South Korea weighs education tax on crypto exchanges

South Korea has begun considering a new education tax on cryptocurrency exchanges that could leave major operators such as Upbit and Bithumb paying billions of won annually if they are reclassified as financial businesses under the proposed Digital Asset Basic Act. Summary South Korea is considering imposing an education tax on cryptocurrency exchanges if they are classified as financial businesses under the proposed Digital Asset Basic Act. Government officials recently discussed the proposal with domestic crypto exchange executives, although no final decision has been made on the new tax obligations. Financial institutions currently pay an education tax of 0.5% on taxable revenue up to 1 trillion won and 1% on amounts exceeding that threshold, even if they report losses. Based on 2025 operating revenue, Dunamu, which operates Upbit, could face an estimated 10.2 billion won education tax bill, while Bithumb could pay around 3.2 billion won. According to an October 26 report by Seoul Economic Daily, government officials recently raised the possibility during discussions with chief executives of domestic cryptocurrency exchanges, as authorities continue working on legislation that w...