South Korea Considers Education Tax on Cryptocurrency Exchanges

South Korean authorities have started exploring a fresh education tax targeted at cryptocurrency platforms. If lawmakers reclassify exchanges as financial entities under the upcoming Digital Asset Basic Act, major market players like Upbit and Bithumb could be hit with annual tax bills reaching billions of won.

A recent report by Seoul Economic Daily on October 26 reveals that government officials brought up the idea during meetings with heads of local crypto exchanges. As authorities refine legislation to bring digital asset companies under tighter oversight, major industry leaders were informed of potential upcoming policy changes.

Officials are currently evaluating whether crypto platforms must contribute to the same education tax that applies to traditional banks, insurers, and brokerage houses if lawmakers are prompted to grant them official status as financial firms.

During talks with sector leaders, a top government official noted that if authorities categorize crypto platforms as financial enterprises, policymakers will be forced to decide if these businesses must contribute to the education tax.

The representative noted that when South Korea shaped its initial crypto regulations in 2018, regulators kept trading platforms outside the conventional financial sector. However, as officials draft fresh legislation, existing boundaries are expected to change.

Crypto Exchanges May Face Taxes on Operating Revenue#

Across South Korea, crypto trading platforms and brokerage providers operate under the IT and communications umbrella, allowing these companies to avoid the education tax that traditional lenders and financial institutions are required to pay.

That setup could easily shift once lawmakers pass the Digital Asset Basic Act to recognize crypto platforms as financial firms, provided current tax rules and sector definitions are updated by officials.

Right now, financial institutions across South Korea hand over an education levy calculated from their total operating earnings. Authorities apply a 0.5% rate to taxable revenue up to 1 trillion won, while earnings exceeding that threshold are taxed at 1%.

In contrast to corporate income tax, which applies to net profits, authorities determine the education levy using gross revenue. Consequently, financial firms must still pay this charge even when they are forced to report a net loss.

If regulators extend these same standards to crypto platforms, exchanges must hand over the education levy on their top-line revenue, no matter how much profit is retained after covering operational costs.

A breakdown of financial filings from South Korea’s top five crypto trading platforms by Seoul Economic Daily reveals that Upbit operator Dunamu brought in 1.5212 trillion won in operating revenue for 2025, a performance that was highlighted in recent industry reports.

Bithumb ranked second after pulling in roughly 651.3 billion won, with Coinone following behind at 45.4 billion won. Meanwhile, DigitalX and Gopax recorded operating revenues of 9.7 billion won and 4.3 billion won, respectively, as these lower figures were detailed in corporate disclosures.

Applying current education tax rates for financial firms, the report projected that Dunamu might owe roughly 10.2 billion won each year, while a potential tax bill of around 3.2 billion won was calculated for Bithumb.

These projections assume regulators will force crypto exchanges to pay the education levy while sparing trading fees from value-added tax. Actual totals may ultimately vary depending on which revenue streams face taxation and what exemptions are granted under the updated framework.

South Korea’s Digital Asset Basic Act Remains Under Discussion#

At the same time, the proposed education tax surfaced just as South Korean regulators push to finalize the nation’s second-phase cryptocurrency legislation, a milestone that was anticipated across the industry.

Financial Services Commission Chairman Lee Eog-weon informed lawmakers on October 22 that official talks surrounding the Digital Asset Basic Act were finalized almost completely.

Officials have not yet set a firm timetable for introducing the draft law, as key clauses regarding crypto exchange oversight and stablecoin regulation are delayed by ongoing debate.

Back in September, the FSC set its sights on a November review by a National Assembly subcommittee to push forward the nation’s next phase of digital asset oversight, a timeline that was established as part of broader regulatory efforts.

Lawmakers intend for the upcoming bill to expand upon South Korea’s existing Virtual Asset User Protection Act, which established key investor safeguards and operational standards that were required for crypto exchanges.

Unresolved questions include how officials should license digital asset service providers, how regulators should oversee exchanges, and which financial institutions are permitted to issue won-denominated stablecoins.

South Korea Debates Separate Tax on Cryptocurrency Gains#

The debate surrounding exchange taxation arrives just as South Korea evaluates yet another delay for its repeatedly postponed tax on crypto capital gains, a policy shift that was discussed by policymakers in recent sessions.

According to current plans, investors earning qualifying annual crypto gains above 2.5 million won will pay a combined 22% rate starting January 1, 2027, under a framework that was scheduled by tax authorities.

However, the presidential administration supports postponing the levy once more, with ruling-party legislators offering to push enforcement to 2029 because readiness issues and cross-border tracking hurdles were raised as primary concerns.

The proposed education tax remains entirely distinct from the capital gains levy, targetting the gross operating revenue of crypto enterprises rather than individual trading profits, a distinction that was highlighted by tax experts.

In the meantime, South Korea’s National Tax Service continues laying the groundwork for the existing investor tax framework, drafting guidelines for cryptocurrency transactions that are expected to debut in November.

Tax authorities intend for the upcoming guidance to clarify tax rules for staking rewards, free token airdrops, network hard forks, and decentralized finance returns—grey areas that were identified as needing official resolution before any final launch.