South Korea’s 2027 Crypto Tax Is Official: 22% on Gains Over $1,800

South Korea is one of the world’s largest retail crypto markets, with more than 13 million investors. The announcement has already stirred debate about whether traders will shift activity to overseas exchanges to avoid the tax, potentially cutting local volumes on platforms like Upbit, Bithumb, Coinone, Korbit, and Gopax.

The Digital Asset eXchange Alliance, or DAXA, has warned that stricter anti-money laundering reporting rules tied to the tax could swamp exchanges. It estimates suspicious transaction reports could jump from roughly 63,000 a year to nearly 5.4 million once the rules take effect.

The tax was first scheduled for 2021 but was pushed back repeatedly under industry and political pressure. The opposition People Power Party has proposed legislation to scrap the tax entirely. Unless lawmakers approve another delay or a repeal, the rules stand.

Investors will make their first tax filings in May 2028. Before then, the National Tax Service will publish compliance guidelines in coordination with the major exchanges.