Overview
- South Korea created a new legal category for a “virtual‑asset transfer service,” requiring firms that move crypto across borders to register with the finance minister.
- The Finance Ministry, which reaffirmed the schedule Thursday at a National Assembly forum, said the crypto gains tax will start on January 1, 2027.
- The levy applies a combined 22% rate—20% national income tax plus 2% local tax—on annual virtual‑asset gains above 2.5 million won from trading, transfers, and lending.
- The National Tax Service is drafting 2026 guidance and building data standards with major exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—with first full filings due in May 2028 for 2027 income.
- Political and industry pushback continues, including a People Power Party proposal to scrap the tax, though officials say the plan will proceed unless lawmakers change the law.