South Korea has just found itself a new cash cow: crypto platforms.
Until now, exchanges were classified as “information technology” businesses. Tomorrow, they could become “financial institutions”… and pay the education tax, just like banks. The result? Upbit (Dunamu) could owe 10.2 billion won a year. Bithumb, 3.2 billion.
And as always, the real question is: who will end up paying?
The South Korean government is preparing a framework law on digital assets (the Digital Asset Basic Act). Once adopted, the law could reclassify crypto exchanges from “information and communications” businesses as “financial institutions.”
Or, in South Korea, banks, insurers, and securities firms pay an education tax calculated on their revenue, not their profits: 0.5% on the first 1,000 billion won of taxable revenue, and 1% above that.
As a result, even a company that is losing money has to pay this tax as soon as it generates revenue.
Based on 2025 revenue, Dunamu (Upbit) reported 1,521.2 billion won in operating revenue, and Bithumb 651.3 billion. Mechanically applying the tax rates would produce the estimates cited above.
An important caveat: the Ministry of Economy and Finance denied having “examined” this tax, while acknowledging that the question would arise “naturally” if exchanges became financial companies. In other words, the debate is open, but nothing has been voted on yet.
This story teaches you three concrete things:
1. The risk isn't the tax itself, but passing it on. Exchanges could raise their trading fees or cut promotions to offset the bill. The Seoul Economic Daily's analysis spells it out: exchanges could raise fees or reduce discounts to offset the education tax, shifting the burden onto users.
2. VAT could change things. Trading fees are currently subject to VAT. If exchanges become financial institutions, these fees could become VAT-exempt, which would bring fees down… provided platforms pass on the savings. It will all depend on competition.
3. There is already a precedent. The education tax on the financial sector is highly controversial in Korea: the five largest banks saw their tax bill rise from about 260 billion won in the first half of 2024 to nearly 480 billion in the first half of 2025, because the rate doubles on amounts above 1,000 billion won. Extending this model to crypto would open up a new front.
What you can do right now:
Keep an eye on your platforms' fees. If you trade on Korean exchanges or KRW pairs, watch their fee schedules over the coming months.
Don't give in to kimchi-style FOMO. A tax rumor is not a trading signal. Wait for the official legislation.
Educate yourself, but not because of a tax. Understanding crypto taxation (in Korea, France, and elsewhere) is the best protection against unpleasant surprises.
Share this post if you know someone who trades on the Korean market.
This is not financial advice. What could happen next
If the law passes and the tax takes effect: trading fees could rise to offset the bill; smaller exchanges (Gopax, DigitalX) could become even more vulnerable.
If trading fees become VAT-exempt: fees could potentially fall… if competition works as it should. Otherwise, platforms will keep the savings.
If the government backs down or postpones the measure: the status quo remains, with exchanges staying in the ICT sector and avoiding the tax.
If other countries follow suit: Korea is a regulatory testing ground in Asia. If the model proves fiscally successful, other jurisdictions could take inspiration from it.
The real issue isn't Korea. It's the precedent: tomorrow, treating a crypto platform as a “financial institution” could mean imposing all the obligations banks face—taxation, reporting, compliance—and thus structurally increasing the cost of access for the end user.