South Korea has confirmed that cryptocurrency taxation will officially begin on January 1, 2027, after multiple delays. Finance Minister Koo Yun-chul stated the government will proceed without fail, while signaling that the framework may be revised after implementation. Separately, Seoul police arrested three suspects linked to a fake XRP staking platform that defrauded investors of an estimated $19 million.
South Korea has reaffirmed its commitment to introducing crypto taxation in 2027 while intensifying efforts to combat digital asset fraud. Finance Minister Koo Yun-chul confirmed the timeline during a National Assembly session, stating the government will proceed from January 1, 2027, without fail.
Koo noted that authorities are prepared to assess and improve the system once implemented. Under the current Income Tax Act, virtual asset profits enjoy a yearly exemption of up to 2.5 million won (roughly $1,760). Profits above that threshold are taxed at 20%, rising to approximately 22% including local taxes.
The law was originally scheduled for 2022 but was delayed three times due to insufficient infrastructure. During the parliamentary discussion, Kim Sang-hoon argued that without loss carryforward rules, domestic crypto investments would fail and capital would flee. Koo responded that more radical reforms, such as introducing a capital gains tax system, would require an extensive assessment of the country’s financial infrastructure.
In a separate development, the Cyber Investigation Unit of the Seoul Metropolitan Police Agency arrested three individuals alleged to be behind a fraud scheme involving a fake XRP staking site. The scam, reported to have operated between October 16 and October 23 last year, offered returns of 1.5% to 1.8% monthly in XRP tokens.
The fraudsters used Naver blogs, Naver Knowledge iN, Tistory, article websites, Wikipedia, and YouTube channels to lure victims. Investigators found that 71 people sent approximately 3.4 million XRP, equivalent to about 12.3 billion won ($8.7 million).
Police said the operators had used the identities of legitimate blockchain ventures like Flare Network and FXRP before the platform collapsed and disappeared with investments. Investigators tracked digital footprints of domain names and IPs, freezing a wallet associated with the scam after receiving an anonymous tip-off. Although some funds had been moved, the total estimated profit from the scheme was 27 billion won ($19 million).
The crypto landscape in South Korea is set to be governed by an enhanced taxation regime and stricter anti-fraud actions. As virtual currencies become further entrenched in the financial system, regulators are responding with increased oversight.
