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Calls for Regulatory Overhaul Mount Ahead of South Korea's Crypto Tax Launch
Commercial Services · Financial Publishing/Services · yonhap_finance · 2026-09-03
Experts warn that South Korea's upcoming crypto tax regime lacks the necessary infrastructure and clarity to handle diverse digital asset transactions.
What Happened
Regulatory Gaps: With the implementation of South Korea's crypto tax regime only four months away, experts have raised concerns over the lack of clear tax frameworks and infrastructure. Discussions at a recent parliamentary forum highlighted the need for specific income classifications for various transaction types, such as staking and lending.
Investor Challenges: Investors currently face significant hurdles in calculating acquisition costs, as they must manually aggregate data from multiple exchanges and private wallets. The inability to track transaction history across different Virtual Asset Service Providers (VASPs) further complicates compliance and data reporting.
Proposed Improvements: Experts suggest implementing loss carry-forward provisions to account for the high volatility of digital assets. Additionally, there are calls to establish standardized forms for transferring acquisition cost data between service providers to ensure accurate tax reporting.
Structural Critique: Academics have criticized the current tax structure for attempting to treat cryptocurrencies like traditional intangible assets, which they argue is a fundamental flaw. Legislative researchers have urged a comprehensive review of the 2020 tax framework to ensure it remains relevant to current economic and environmental realities.