South Korea to Impose 22% Tax on Crypto Gains Starting in 2027
South Korea plans to introduce a tax of 22% on annual cryptocurrency gains exceeding KRW 2.5 million ($1,740) starting January 1, 2027. The government has delayed the implementation several times since 2022 but now insists it will proceed as scheduled. Under the new rules, income from transferring or lending crypto assets will be classified separately under 'other income.' Investors will receive a deduction equivalent to $1,740 annually before gains are taxed. Critics argue that implementing this tax ahead of the OECD's cross-border Crypto-Asset Reporting Framework could lead to capital flight and regulatory challenges. A proposed bill in March aims to remove crypto from South Korea’s Income Tax Act altogether, which would abolish the planned levy. The announcement comes as Bitcoin trades at $64,750.