Korea's Crypto Investors Face Tax Uncertainties Ahead of Full-Scale Regulation

South Korea's crypto investors are bracing for tax uncertainties as the National Assembly Research Service has flagged potential legal disputes ahead of full-scale taxation next year. The research service submitted a written response to lawmaker Park Jeong-hoon, highlighting concerns over staking and airdrop taxation standards.

The agency recommended refining tax rules for newer forms of token acquisition, such as staking and airdrops, to prevent disputes over their treatment. It also criticized the current framework's prohibition on loss carryforwards, which can lead to double taxation.

Profits earned by South Korean residents through overseas exchanges could be taxed both in Korea and abroad, raising concerns about double taxation. The government plans to classify income from virtual-asset investing as 'other income' next year, with a 2.5 million won deduction before tax is imposed on excess amounts.