South Korea’s Digital Asset Bill Nears Final Talks as 2027 Crypto Tax Looms

South Korea is moving closer to introducing its proposed Digital Asset Basic Act as financial regulators near the end of consultations. However, lawmakers remain divided over whether cryptocurrency taxation should begin before the country completes its broader regulatory framework.

According to an October 22 Yonhap News Agency report, Financial Services Commission (FSC) Chairman Lee Eog-weon told the National Assembly’s Political Affairs Committee that discussions on the legislation were nearly complete and authorities intended to advance the bill without unnecessary delays.

His remarks came during a parliamentary audit after opposition lawmakers questioned the government’s progress. People Power Party lawmaker Song Eon-seok noted that officials had promised to prepare a government proposal during a presidential briefing in July, but had not yet published a finalized draft.

Income Tax Act in 2020, the tax has already been postponed three times. It is currently scheduled to take effect on January 1, 2027. Any further delay would require legislative action, and Thursday’s hearing produced no decision to change that date.

South Korea Continues Crypto Tax Preparations

Despite calls for another postponement, the National Tax Service continues to prepare for implementation.

The agency has been developing guidance covering transactions such as staking rewards, airdrops, hard forks and decentralized finance activity. During an October 13 parliamentary hearing, tax officials said they were consulting exchanges on reporting systems and the treatment of different cryptocurrency transactions.

An October 19 report detailed planned consultations with exchanges, including Upbit, Bithumb, Coinone, DigitalX and Gopax, to identify potential implementation challenges.

Meanwhile, a separate petition seeking a two-year postponement gathered the 50,000 signatures required for parliamentary consideration. However, the petition’s review does not automatically suspend the tax. Proposals from opposition lawmakers and requests from some ruling-party members also require parliamentary approval.

Authorities must still clarify how investors should calculate taxable gains across different transaction types and report activity involving overseas platforms or privately controlled wallets.

Tax Authority Targets October 30 for Draft Notice

The National Tax Service is continuing its administrative preparations under the existing timetable.

According to an October 22 report by Digital Asset, the agency plans to finalize its draft cryptocurrency tax notice on October 30. The reported schedule includes a preliminary review on November 6, followed by public notice on November 30, ahead of the planned January 1, 2027, implementation.

South Korea Faces a Crypto Regulation and Taxation Challenge

South Korea’s efforts to finalize its digital asset legislation while preparing to tax cryptocurrency gains expose a tension between regulatory clarity and implementation deadlines. Introducing the tax before resolving questions about asset classification, reporting requirements and newer activities such as decentralized finance could increase uncertainty for investors and businesses.

Yet another postponement would prolong uncertainty surrounding a policy already delayed three times. The critical factor will be whether authorities can align the tax rules with the proposed regulatory framework before January 2027. Progress on the Digital Asset Basic Act and the upcoming tax notice will indicate whether South Korea can establish a more consistent approach to digital asset oversight and taxation.