South Korea's crypto asset tax may face a fourth postponement, with the Blue House leaning toward delaying implementation.

According to the Korea Economic Daily, South Korea's presidential office, Cheong Wa Dae, is inclined to postpone the implementation of the crypto asset income tax originally scheduled for January 1, 2027. If ultimately approved, this would mark the fourth delay for the tax regime. However, Cheong Wa Dae emphasized that discussions are still ongoing and no final decision has been reached. Under current arrangements, South Korea will tax income from the transfer or lending of crypto assets. After deducting an annual basic exemption of 2.5 million Korean won, a comprehensive tax rate of 22% will apply. Considerations for delaying the tax include difficulties in acquiring overseas transaction data and high participation rates among younger investors. The South Korean government worries that if it implements the tax early, it may face challenges in adequately tracking the relevant income of South Korean residents on U.S. exchanges, especially since the United States plans to join the Crypto-Asset Reporting Framework (CARF) in 2029.