South Korea Delays 22% Crypto Gains Tax to 2029 in Fourth Postponement Since 2020

South Korea has proposed pushing its 22% cryptocurrency gains tax back to 2029, delaying it from the previously scheduled January 2027 start date. The move marks the fourth postponement of the levy since it was first introduced in 2020, a pattern that spans six years without the tax taking effect.

The ruling Democratic Party is backing the delay, citing the need to align with international tax-sharing frameworks. A key reason is that the United States will not participate in the OECD's Crypto-Asset Reporting Framework, known as CARF, until 2029, leaving South Korean officials concerned that domestic exchange users would bear an unequal tax burden without reciprocal data sharing from abroad. The proposal also includes a provision allowing investors to carry forward losses for three years, a measure that would soften the eventual tax impact.

Analysts and market observers expect the delay to boost investor confidence and support a more favorable regulatory climate for crypto investment in South Korea in the near term.