Finance Minister Koo Yun-chul confirmed in a National Assembly session that South Korea will introduce cryptocurrency taxation starting January 1, 2027. The government insists the plan will move forward despite previous delays caused by insufficient infrastructure. Crypto gains above 2.5 million won will be taxed at 20%, rising to about 22% including local levies. This move aims to regulate digital assets while protecting investors by cracking down on fraud.
Lawmakers debated the need for further reforms, including loss carryforward rules, which some warn are necessary to prevent capital flight from the local crypto market. Koo acknowledged that more full changes, such as adopting a capital gains tax system used in other countries, would require a careful review of South Korea's financial setup.
Meanwhile, Seoul police have apprehended three suspects involved in a sophisticated XRP staking scam. The scheme, active from mid to late October last year, promised monthly returns of 1.5% to 1.8% paid in XRP tokens. It exploited multiple platforms like Naver blogs, Wikipedia, and YouTube to lure 71 victims, amassing approximately 3.4 million XRP, worth about 12.3 billion won. Authorities revealed that the fraudsters impersonated legitimate blockchain companies to gain trust.
South Korea’s crypto tax framework is part of a broader effort to formalize the sector and prevent market abuses. The crackdown on scams shows how regulators are intensifying oversight as the tax implementation date approaches.
Bitcoin and major altcoins showed muted reactions following the announcement, trading within narrow ranges.
This material is for informational purposes and does not constitute financial advice.
