South Korea’s approach to digital assets has developed a familiar rhythm. The government announces an ambitious reform. The cryptocurrency industry pushes back. Lawmakers debate the consequences. Then the deadline slips. The pattern has repeated itself for years, but the latest postponement carries greater significance.

With the Digital Asset Basic Act (DABA) still taking shape, South Korea faces a fundamental question: Should it begin taxing cryptocurrency gains before establishing the regulatory infrastructure necessary to administer those taxes fairly?

The government has now offered its answer. On November 5, Finance Minister Lee Hyoung-il announced plans to postpone cryptocurrency taxation from January…