Kwon Dae-young, the First Vice Minister of the Ministry of Economy and Finance, is gathering opinions from industry experts ahead of the implementation of virtual asset taxation in January 2027. He emphasized the need to consider the diverse market conditions and the establishment of a taxation infrastructure while adhering to taxation principles.
On the morning of October 20, Kwon held a roundtable at the Seoul Local Procurement Service with representatives from the virtual asset industry and experts. He stated, "As virtual asset trading becomes more active, the taxation system must be carefully designed and operated to fully consider market changes and the characteristics of transactions along with the principles of taxation."
This roundtable was organized to gather extensive feedback from the field ahead of the scheduled implementation of virtual asset taxation on January 1, 2027. Attendees included officials from the Ministry of Economy and Finance and the Financial Services Commission, as well as representatives from virtual asset companies such as Dunamu, Bithumb, and Coinone, along with academics and legal experts.
Professor Park Hoon from the University of Seoul, who led the discussion, introduced key issues surrounding virtual asset taxation, international examples, and information exchange between countries. He noted, "Major countries like the United States, the United Kingdom, and Japan have already implemented virtual asset taxation, while South Korea has postponed its taxation system three times since its introduction in 2020. It is necessary to consider a comprehensive roadmap for the rational implementation and establishment of a taxation system."
The virtual asset industry has urged for clear taxation standards to reduce uncertainty for taxpayers and businesses, given the increasingly diverse and complex trading methods. They also emphasized the need for a preparation period to establish and verify a tax data submission system. Additionally, they requested that the government consider equity in taxation for users of overseas exchanges, as well as domestic market conditions and global policy environments.
Experts suggested that while establishing fair and rational taxation standards, it is essential to review detailed criteria for different transaction types and improve reporting convenience. There were calls to clarify taxation standards for various transaction types, including staking, and to consider the introduction of loss carryover deductions. Changes resulting from the ongoing discussions on the establishment of a Digital Asset Basic Law were also highlighted as important considerations.
Kwon reiterated, "The principle that 'taxation exists where income is generated' must be respected, and for this principle to take root in the market, both the taxation infrastructure and market regulatory systems must be established together." He added, "We will comprehensively review the conditions for information exchange between countries, taxation standards by transaction type, and the readiness for reporting convenience, and we will carefully consider the opinions raised today while closely consulting with relevant ministries."
* This article has been translated by AI.
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