Han Dong-hoon calls for immediate delay of crypto tax to prevent investor flight

Independent lawmaker Han Dong-hoon urged an immediate delay of crypto taxation, warning that failure to do so could push South Korean investors to foreign platforms beyond tax authorities' reach. In a Facebook post, Han criticized the Democratic Party government for not recognizing the urgency of the situation, noting that 2027 is only three months away and a prompt decision is necessary. He highlighted that popular exchanges like Binance and Bybit are based in the UAE, while Gate and Bitget are located in the Cayman Islands and Seychelles, respectively. Under the Crypto-Asset Reporting Framework (CARF), the UAE and Seychelles will not begin information exchanges until 2028. Han expressed concern that South Korean investors might migrate to decentralized platforms within the next three months. He proposed delaying taxation by at least two years to allow authorities to gather transaction data from overseas exchanges through CARF and to provide more time for second-phase virtual asset legislation. Han warned that announcing detailed crypto tax measures at year-end could provoke public backlash similar to that experienced during a housing tax overhaul proposal.

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