South Korea may levy an “education tax” on crypto exchanges? Upbit could face a bill of over KRW 10 billion
On October 26, South Korean media reported that the government is considering levying an “education tax” on crypto exchanges. There’s a condition, though: the tax would only be imposed if exchanges are officially classified as “financial institutions” under the Digital Asset Act.
Crypto trading in South Korea is currently classified as an “information and communications business,” which exempts it from the tax. If reclassified as part of the financial sector, the tax rate would follow the model for banks and securities firms: 0.5% on the first KRW 1 trillion in revenue, and 1% on the amount above that.
Here’s a rough calculation: Upbit’s operator, Dunamu, the country’s largest exchange, recorded KRW 1.52 trillion in revenue last year. If taxed, it could owe an estimated KRW 10.2 billion. Bithumb could owe around KRW 3.2 billion.
The industry’s biggest concern is whether exchanges will pass on this additional cost to retail investors indirectly by raising trading fees.
Disclaimer: This is only a summary of publicly available information and does not constitute investment advice.
$BTC #韩国考虑对加密交易所征教育税 #加密税
On October 26, South Korean media reported that the government is considering levying an “education tax” on crypto exchanges. There’s a condition, though: the tax would only be imposed if exchanges are officially classified as “financial institutions” under the Digital Asset Act.
Crypto trading in South Korea is currently classified as an “information and communications business,” which exempts it from the tax. If reclassified as part of the financial sector, the tax rate would follow the model for banks and securities firms: 0.5% on the first KRW 1 trillion in revenue, and 1% on the amount above that.
Here’s a rough calculation: Upbit’s operator, Dunamu, the country’s largest exchange, recorded KRW 1.52 trillion in revenue last year. If taxed, it could owe an estimated KRW 10.2 billion. Bithumb could owe around KRW 3.2 billion.
The industry’s biggest concern is whether exchanges will pass on this additional cost to retail investors indirectly by raising trading fees.
Disclaimer: This is only a summary of publicly available information and does not constitute investment advice.
$BTC #韩国考虑对加密交易所征教育税 #加密税