South Korea will meet five major cryptocurrency exchanges on Tuesday, October 20, 2026 to discuss its planned 22% tax on crypto income.
The exchanges want more time to prepare, while a new bill could delay the tax until 2029.
According to Yonhap News Agency, Upbit, Bithumb, Coinone, DigitalX and Gopax will attend the meeting.
Executives from the Digital Asset Exchange Alliance (DAXA) will also join the talks.
First Vice Minister of Finance and Economy Kwon Dae-young and Financial Services Commission official Yoo Young-jun will hear the exchanges’ concerns. The meeting follows Finance Minister Lee Hyoung-il’s Tuesday, October 6, 2026 promise to gather views from groups affected by the tax.
South Korea introduced its cryptocurrency income tax framework in 2020 through an amendment to the Income Tax Act. Lawmakers have postponed the tax three times and now plan to introduce it on January 1, 2027.
Under the current rules, investors can deduct 2.5 million won from their qualifying annual cryptocurrency income.
They would pay a combined 22% tax on income from cryptocurrency transfers and lending above that amount.
The rate includes a 20% national income tax and a 2% local income tax.
South Korea New Bill Could Delay Crypto Tax Until 2029
Democratic Party lawmaker Park Min-gyu introduced an amendment to the Income Tax Act on Friday, October 16. His bill would link the tax start date to international exchanges of cryptocurrency transaction data.
Under the proposal, South Korea would begin taxing qualifying cryptocurrency income on January 1 of the second year after the first qualifying international data exchange. If that exchange begins in 2027, the proposed start date would become January 1, 2029.
However, the bill does not guarantee a 2029 start. The National Assembly must approve the proposal before it can replace the current January 2027 deadline.
Park argues that South Korean tax authorities may struggle to collect complete transaction records from foreign platforms.
He warns that this gap could lead to different tax treatment for investors using domestic and overseas crypto exchanges.
Exchanges also want clearer rules for staking rewards, airdrops, hard forks, and decentralized finance (DeFi) transactions.
Staking allows cryptocurrency holders to earn rewards by helping blockchain networks validate transactions. Exchanges want tax authorities to clarify whether these rewards count as lending income or compensation for validation work.
Airdrops give users tokens without a conventional purchase, while blockchain hard forks can create new digital assets. Both activities raise questions about how investors should report and calculate taxable income. DeFi platforms also let users lend, borrow, and deposit cryptocurrency through blockchain-based services.
Exchanges warn that investors’ use of private wallets and foreign platforms could leave them without complete transaction records.
These gaps could complicate the calculation of taxable gains. Industry representatives also want the government to address the lack of loss carry-forward deductions and explain why cryptocurrency income receives different tax treatment from other investments.
Government Prepares for 2027 Tax Rollout
South Korea’s National Tax Service continues preparing for the January 1, 2027, deadline despite calls for another delay. Commissioner Lim Gwang-hyeon told lawmakers on October 13 that the agency planned to publish detailed cryptocurrency tax guidance around November.
Government officials have instructed the tax authority to continue preparations unless lawmakers approve a delay. As of October 19, the National Assembly had not approved Park’s bill, so the current deadline remained in place.
Meanwhile, the Financial Services Commission is drafting the government’s Digital Asset Basic Act. Officials are discussing proposed ownership limits of 15%–20% for major shareholders in cryptocurrency exchanges and possible requirements for banks to hold majority stakes in groups issuing won-denominated stablecoins.
