Key Insights: Crypto news: South Korea delays crypto tax by two years as ruling and opposition party leaders back the revised bill. South Korea’s crypto regulation includes a proposed three-y
Crypto news from South Korea reports another two-year delay to the planned taxation of digital asset gains. The ruling party, opposition leaders, and the government have agreed to the move. The revised tax bill now awaits a year-end vote.
Recent crypto news shows that South Korea has agreed to delay its planned crypto tax law by another two years. Leaders of both the ruling and opposition parties formally proposed the move, and the executive branch has accepted it.
According to FIREANT Korea, the Ministry of Economy and Finance has confirmed the revised tax bill. The amendment still needs to pass a vote before the end of the year.
The decision brings relief to South Korean crypto investors who have been waiting for clarity on when taxes on digital asset gains would begin. This latest delay gives them two more years before the planned rules take effect.
Crypto News – South Korea Delays Crypto Taxation | Source: Cedric (X)
Notably, the ministry has also included a three-year loss carryover deduction in its announcement. Under this provision, investors could carry forward eligible losses for three years and use them to reduce taxable gains in later periods.
It is worth noting that both changes are part of the revised proposal. However, the bill must still pass the year-end vote before the delay becomes official.
While the crypto tax plan faces another delay, South Korea is also considering tighter security rules for digital asset exchanges. According to News1, cited by Wu Blockchain, the Financial Services Commission is considering raising the minimum cold wallet storage requirement for crypto exchanges from 80% to around 99%.
Cold wallets store digital assets offline, making them less exposed to online attacks. A higher requirement would mean exchanges must keep nearly all customer funds in offline storage.
Figures reported for major local exchanges show different levels of cold wallet use. Upbit reportedly holds more than 99% of customer assets in cold wallets. Bithumb holds about 94%, while Coinone keeps roughly 85%.
The proposal has raised concerns among industry players. Moving funds between cold and hot wallets could take more time, which may slow customer withdrawals.
Smaller exchanges may also face higher costs as they try to meet the proposed standard. These concerns have led to questions about how the new rule would affect daily operations. The Financial Services Commission has not approved the proposal. Discussions are still underway, and the final requirement could change.
South Korea is not alone in making changes to crypto regulation. Hong Kong has passed a law requiring crypto firms to collect customer transaction records for tax purposes from 2027. According to Coin Bureau, the rules cover crypto purchases, sales, token swaps, and transfers to external wallets.
Source: Coin Bureau (X)
The new law means crypto firms will have to keep records of these activities for tax reporting. The requirements mark a change in how digital asset transactions will be handled in the city. While South Korea’s crypto regulation is moving toward another delay in taxation, Hong Kong is preparing to introduce new reporting rules.
The two markets are taking different steps on crypto tax. South Korea is giving investors more time before its planned tax law begins, while Hong Kong is moving ahead with transaction reporting.
For South Korean investors, the crypto news shows the next key date is the year-end vote on the revised bill. Until lawmakers approve it, the proposed two-year delay is not final.
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