South Korea May Delay Crypto Tax Enforcement Until 2029

South Korean lawmakers are actively considering pushing back implementation of the country's cryptocurrency income tax to 2029, according to reports, marking what would be another significant delay for a policy first established in 2020. The proposed postponement signals ongoing friction between legislative ambition and practical readiness inside one of the world's most active crypto markets.

The central sticking point, according to reports, involves difficulties in obtaining necessary financial data from US officials — a cross-border data-sharing challenge that Seoul has apparently been unable to resolve ahead of the current compliance timeline. Without that information, authorities fear an uneven or unenforceable tax regime that could create loopholes or unfair treatment for Korean investors holding foreign digital assets.

Read more Bessent Backs SEC and CFTC Crypto Rules as Congress Stalls →

South Korea's crypto tax saga stretches back half a decade. The government originally introduced the digital asset income tax framework in 2020, but enforcement has been repeatedly deferred as policymakers scrambled to build infrastructure, establish regulatory clarity, and coordinate with international counterparts. Each delay has drawn criticism from fiscal hawks who argue the government is leaving substantial revenue on the table while retail crypto participation in the country remains robust.

If lawmakers approve yet another postponement, it would push the effective start date to 2029 — nearly a decade after the original policy was drafted. The move would likely be welcomed by domestic crypto exchanges and retail investors but could complicate South Korea's standing in global efforts to harmonize digital asset taxation standards. Analysts note that sustained delays may also embolden crypto holders to defer compliance planning, creating a larger administrative challenge when enforcement eventually arrives.

Continue reading at Cointelegraph.