South Korean lawmaker urges two-year delay to 2027 crypto tax over enforcement gaps

# What happened

Independent lawmaker Han Dong-hoon publicly urged the South Korean government to delay the planned cryptocurrency income tax for two more years ahead of its scheduled start on Jan. 1, 2027. Han said enforcement remains unreliable because overseas trading and private-wallet activity are difficult to detect consistently.

# Why Han wants a delay

Han also questioned whether the OECD's Crypto-Asset Reporting Framework (CARF) will supply enough cross-border transaction information when the tax starts. He offered an estimate that CARF could cover less than 20% of trading, but the source material identifies that figure as his estimate rather than an independently established measurement.

# What the tax looks like

# Government enforcement plans

Service (NTS) have said overseas activity will remain taxable. The government plans three main tools:

• Wallet tracing: Because blockchain addresses do not automatically identify holders, the NTS is preparing commercial wallet-tracing software to track transfers between blockchain addresses.

• Internal systems: The NTS has completed a tax source management system and is developing an integrated analysis system for virtual-asset taxation, working with major domestic exchanges during preparations.

# Public and political reaction

A citizen petition calling for another two-year delay exceeded the 50,000-signature threshold required for parliamentary review. The issue has attracted attention across parties and industry groups, with other lawmakers and the ruling party also expressing delay requests in related reporting.

# Where the debate stands now

Han's call frames the choice as one between starting the tax on schedule with enforcement gaps or delaying until cross-border reporting and wallet-identification tools are more effective. The government maintains the tax will apply to overseas activity and is building reporting and tracing tools to address enforcement. The disagreement centers on whether those measures will be sufficient and timely by the 2027 implementation date.

# Practical implications for investors

If the tax begins as planned, gains above the 2.5 million won deduction will be taxable at an effective 22% rate regardless of whether they occur on domestic or foreign platforms. However, enforcement challenges could create uneven exposure depending on whether an investor keeps assets on regulated domestic platforms or moves them offshore or to self-custody.