South Korea Confirms 22% Crypto Tax on Private Wallets, Foreign Exchanges

TheNewsCrypto2026-08-20 tarihinde yayınlandı2026-08-20 tarihinde güncellendi

Özet

South Korea has confirmed that its 20-22% cryptocurrency income tax, effective from January 1, 2027, will apply to income generated through both private (self-custody) wallets and foreign exchanges. The National Tax Service (NTS) stated taxation is based on the individual's residency, regardless of the asset's storage location. An annual deduction of 2.5 million won applies, with income above this taxed at 20% plus local taxes. Authorities acknowledge challenges in tracking self-custodied wallets and plan to develop transaction analysis systems. For foreign exchanges, South Korea will utilize the Offshore Financial Account Disclosure and the OECD's Crypto-Asset Reporting Framework. The move follows significant overseas transfers from local exchanges. Despite political opposition and a public petition calling for delay or abolition, preparations for the 2027 implementation are ongoing.

South Korea has officially stated that its crypto tax will include taxable income generated by means of individual wallets and foreign exchanges as of January 1, 2027. According to the Ministry of Economy and Finance and NTS it doesn’t matter where the asset is located or how it is stored. They said it will still be liable for taxes.

Under the proposed system, income from digital assets will be classified as other income with an annual deduction of 2.5 million won. The income exceeding this amount will be taxed at 20% nationally and additionally by local income tax up to 22%.

Self-Custody Cryptocurrency Will Be Taxed

According to NTS, South Korean residents will have to declare their tax obligations related to cryptocurrency transfers and lending. They reported income regardless of whether individuals used self-custody or foreign exchanges. However, they acknowledged that monitoring self-custodied wallets presents challenges because individuals can generate multiple addresses without intermediaries.

In order to solve this problem, NTS will develop transaction tracking and analysis systems. At the same time, the government continues to work on ways to deal with self-custodied cryptocurrencies when investigating crimes. The new approach differs from the rules governing financial account reporting for foreign individuals. In 2024, foreign wallets that did not control people’s assets were exempted from reporting requirements.

Overseas Exchanges Under Increased Reporting Obligations

In terms of foreign exchanges, South Korea intends to employ Offshore Financial Account Disclosure and the OECD’s Crypto-Asset Reporting Framework for tracking the movements of cryptocurrency. South Korea has also imposed regulations for registration of cross-border transfers of cryptocurrencies.

Government figures revealed that there was almost $60 billion worth of cryptocurrency that was transferred from local exchanges during the latter part of 2025. There are still political objections regarding this issue, as the People Power Party is demanding its abolition or that it be delayed further. A related petition has already reached more than 50,000 signatures. Yet still, preparations for 2027 are underway despite the objection.

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İlgili Sorular

QWhat is the effective date for South Korea's new crypto tax on income from private wallets and foreign exchanges?

AThe new crypto tax on income generated from individual wallets and foreign exchanges will take effect on January 1, 2027.

QAccording to the article, what are the two main components of the tax rate on crypto income exceeding the annual deduction?

AThe tax on crypto income exceeding the annual deduction consists of a 20% national income tax, plus a local income tax, which can bring the total tax rate up to 22%.

QHow does the National Tax Service (NTS) plan to address the challenge of monitoring self-custodied cryptocurrency wallets?

AThe NTS plans to develop transaction tracking and analysis systems to address the challenges of monitoring self-custodied wallets.

QWhat two frameworks does South Korea intend to use for tracking cryptocurrency movements on foreign exchanges?

ASouth Korea intends to use the Offshore Financial Account Disclosure and the OECD's Crypto-Asset Reporting Framework (CARF) to track cryptocurrency movements on foreign exchanges.

QWhat major political objection to the crypto tax is mentioned in the article?

AThe People Power Party is demanding the abolition or further delay of the crypto tax, and a related petition has gathered over 50,000 signatures.

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