Third Amendment: South Korea Targets Tax on Cryptocurrency Assets

In an effort to modernize the digital tax system, the South Korean government is developing a new policy framework to tax income derived from virtual asset activities. The National Tax Service has initiated a comprehensive research project aimed at capturing the economic benefits of cryptocurrencies, including income from airdrops and staking rewards that have not previously been covered under conventional tax systems.

According to a study by NS3.AI, this third amendment is designed to ensure that all forms of economic gains from the ownership and management of crypto assets can be identified and taxed fairly. The government believes that by integrating cryptocurrencies into the national tax framework, tax avoidance gaps can be minimized while increasing government revenue from the rapidly growing digital sector.

Once this research is completed, the third amendment is expected to undergo cross-ministerial discussions before being enacted into law. This legislative process demonstrates South Korea’s commitment to regulating the cryptocurrency economy in a more transparent and structured manner.