South Korean Lawmaker Proposes Delaying Crypto Tax to 2029, Citing Infrastructure Gaps

A South Korean lawmaker has introduced a bill that would push back the country’s planned cryptocurrency taxation to 2029, arguing that current tax infrastructure is not equipped to handle transactions on decentralized platforms. Kim Sang-hoon of the ruling People Power Party (PPP) filed the amendment to the Income Tax Act on Aug. 28, according to a report by Digital Asset.

Proposed Delay and Rationale

Kim’s proposal seeks to move the taxation of virtual assets to January 2029, two years later than the currently scheduled start date of January 2027. The lawmaker said the National Tax Service lacks sufficient tools to track or verify trades executed through decentralized exchanges, peer-to-peer markets, and DeFi protocols. In contrast, transactions on domestic centralized exchanges are already subject to reporting requirements, making them easier to monitor.

Kim also noted that a global framework for sharing virtual-asset transaction data among major economies is still in development. He warned that without such a system, South Korean tax authorities could face significant gaps in collecting information on overseas crypto transactions, potentially leading to tax evasion and unfairness.

Growing Push Within the PPP