South Korean legislators are considering postponing the implementation of the crypto tax to 2029.

It is reported that the Seoul government is considering postponing again a digital asset income tax policy that began in 2020, due to concerns regarding the receipt of data related to American officials.

It is reported that South Korean government officials are evaluating the possibility of postponing the country's cryptocurrency taxation policy, which is currently scheduled to be implemented in January 2027.

According to reports by South Korean media Newsis on Monday, the implementation of encrypted income tax may be postponed until 2029, partly because that would be the earliest time South Korean officials would be able to share tax information related to digital asset exchanges with the United States.

This policy was first proposed in 2020, with the intention of imposing a 22% tax on crypto earnings for investors with annual revenues exceeding 2.5 million Korean won (1,883 US dollars), of which 20% would be as income tax and 2% as local tax. Since its introduction, the policy has been postponed several times.

An official from the Blue House, the presidential office of South Korea, stated: "We are discussing postponing the implementation of taxation on virtual assets."

The United States plans to begin participating in the Organization for Economic Co-operation and Development (OECD)’s “Cryptocurrency Reporting Framework” starting in 2029, while South Korea will start implementing relevant regulations from 2027. According to reports, a South Korean official stated that South Korea is considering postponing the cryptocurrency tax again because the United States “dominates nearly half of the virtual asset market.”

As of Monday, the South Korean National Tax Service is still listing January 1, 2027, as the start date for crypto taxation.

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