South Korea's planned 22% crypto tax faces a fresh fight, as the government summons the bosses of its five biggest exchanges to a face-to-face meeting on Tuesday, October 20. Traders are watching closely, because a fourth delay — possibly to 2029 — would change the tax bill for one of the world's busiest crypto markets.
Key points:
- The government meets Upbit, Bithumb, Coinone, DigitalX and GOPAX, plus the DAXA exchange alliance, on October 20.
- The 22% tax is set to start in January 2027 on transfer and lending gains above a 2.5 million won deduction, after three past delays.
- Exchanges say the rules for staking, airdrops and DeFi are not ready, and a new bill aims to push the start to 2029.
The meeting brings together the heads of Upbit, Bithumb, Coinone, DigitalX and GOPAX, along with executives from the Digital Asset eXchange Alliance (DAXA). On the government side, First Vice Minister Kwon Dae-young from the finance ministry and Director-General Yoo Young-jun from the Financial Services Commission will attend. Officials are also preparing the formal tax notice, which the tax service told lawmakers could be ready around November.
Under the current plan, crypto gains from transfers and lending would be taxed at a combined 22% — income tax plus local tax — on yearly income above a basic deduction of 2.5 million won. Parliament first wrote the tax into law in 2020, but the start has already been postponed three times. As things stand, it is due to take effect in January 2027, with traders filing for that income in 2028.
Will the tax be delayed again?
Exchange bosses are expected to argue that the system is still not ready. Clear rules for staking rewards, airdrops and DeFi trades are missing, and the systems needed to report and check trader data are not complete. A lawmaker from the ruling Democratic Party has already proposed an amendment to move the start to 2029, which would be the fourth delay in a row.
For traders, the stakes are real. South Korea is one of the world's most active retail crypto markets, and Upbit is among the biggest exchanges on the planet by volume. A delay to 2029 would let Korean traders keep trading without the new tax for two more years, while a firm 2027 start could push some volume to overseas platforms. For now, the government says it is still preparing on the original timetable, so Tuesday's meeting — and the November tax notice — are the next signals to watch.
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— Crypto News Daily News Desk
This post is news only, not financial advice. Always do your own research before buying or selling crypto.
Sources: ChosunBiz, PANews, TokenPost, Cointelegraph