Insiders: South Korea considers imposing an education tax on cryptocurrency CEX

Sources reveal that if CEX is classified as a financial institution under the proposed digital asset legislation, the South Korean government will consider imposing an education tax on it. The government has recently communicated this view to the heads of various cryptocurrency CEXs.

A senior government official stated that if exchanges are included in the financial insurance industry, the issue of education tax collection will arise. Currently, cryptocurrency trading and brokerage businesses in South Korea are classified as information and communication businesses and are not required to pay education tax. Banks, insurance companies, and brokerages pay education tax based on their operating income, with a tax rate of 0.5% on the first 1 trillion won and a tax rate of 1% on amounts exceeding 1 trillion won.