South Korea prepares crypto tax talks with exchanges

• South Korea plans to meet five major cryptocurrency exchanges on 20 October to discuss its scheduled digital asset tax.
• The tax is due to begin in January 2027, with a combined 22% rate on annual taxable income above 2.5 million won.
• Industry concerns over tax rules and reporting infrastructure are fuelling calls for another delay.

South Korea plans to meet representatives from five major cryptocurrency exchanges on 20 October to discuss the planned tax, according to Yonhap News Agency.

Introduced through a 2020 income tax law amendment, the tax has been postponed three times and remains scheduled for January 2027.

The meeting follows Finance Minister Lee Hyeong-il’s commitment to gather stakeholder views on digital asset taxation.

The planned tax applies a combined 22% rate to annual taxable income from crypto transfers and lending exceeding the 2.5 million won deduction.

Industry participants argue that tax rules remain unclear for staking, airdrops, hard forks and decentralised finance transactions.

Authorities also face concerns about tracking holdings across domestic exchanges, overseas platforms and private wallets to calculate taxable gains accurately.

Lawmakers are considering proposals to delay implementation, while the government prepares a broader Digital Asset Basic Act covering the sector.

The meeting could influence South Korea’s crypto tax timetable, but any postponement would require further government or legislative action.