Han Dong-hoon urges immediate crypto tax delay, warns of investor flight

Independent lawmaker Han Dong-hoon said crypto taxation should be delayed immediately, arguing a failure to act could drive South Korean investors out of domestic channels and into areas beyond the reach of tax authorities. In a Facebook post titled "가상자산 과세 유예, 즉시 해야" at 12:45 a.m. UTC today, Han said the Democratic Party government under President Lee Jae-myung still does not appear to grasp the seriousness of crypto taxation. Han said 2027 is only three months away and a decision on a delay should be made quickly. Han said Binance and Bybit, which are widely used by South Korean investors, are based in the United Arab Emirates, while Gate is based in the Cayman Islands and Bitget in Seychelles. Under the Crypto-Asset Reporting Framework, or CARF, the United Arab Emirates and Seychelles would only be able to conduct their first information exchange in 2028, Han said. Han added South Korean investors could leave domestic platforms over the remaining three months and move into decentralized spaces beyond the reach of tax authorities. He said delaying taxation by at least two years would allow authorities to collect transaction data generated on overseas exchanges through CARF, while also creating more time to address second-phase virtual asset legislation. Han added that disclosing detailed crypto tax measures at year-end could trigger public backlash similar to the response to a housing tax overhaul proposal.