South Korea Proposes Postponing 22% Crypto Gains Tax to 2029 With Loss Deductions

South Korean fiscal authorities are moving to reschedule their planned tax framework on virtual asset earnings, recommending another significant postponement. Under the latest legislative submission, the South Korea crypto tax policy, which proposes a 22% levy on digital asset capital gains, would see its effective implementation date pushed back to 2029, marking the fourth postponement of the contentious fiscal measure.

Alongside the multi-year deferral, the government's revised fiscal proposal introduces a mechanism that allows market participants to carry forward trading losses for up to three years. According to a report by Bitcoin Magazine, the loss-offsetting provision aims to align cryptocurrency tax treatment more closely with conventional financial market standards, offering investors tax relief against preceding market downturns before taxing net gains.

The recurring delays highlight the ongoing domestic challenges South Korea faces in establishing robust digital asset infrastructure, market monitoring tools, and clear regulatory classifications. Market advocates and local retail traders have consistently lobbied against swift implementation, arguing that premature taxation could drive domestic capital toward overseas, non-compliant exchanges and suppress local blockchain innovation.

The revised proposal now rests in the hands of the national legislature, which must formally approve the statutory amendments before the extension takes legal effect. Market observers will watch how parliamentary factions debate the timeline and whether additional investor protection rules will be required ahead of the 2029 target window.