Im Kwang-hyun, Commissioner of the National Tax Service, Mentions Limitations on Taxation of Virtual Assets

Im Kwang-hyun, the Commissioner of the National Tax Service, mentioned the limitations in capturing wallet transactions between individuals regarding the taxation of virtual assets, stating that it is "a problem that time must solve." During the National Assembly's audit of the Ministry of Economy and Finance on the 13th, in response to a question from Representative Park Soo-young, Im stated, "The inability to capture transactions such as wallet transfers between individuals is also a challenge faced by other countries." He explained that since digital assets are a new area, it is a topic of discussion among tax authorities worldwide, and it is a problem that time must address. Concerns were also raised that the tax system for domestic exchanges has not been completed ahead of the implementation of taxation on January 1 next year. Upbit has begun constructing the system, but Bithumb has not started development, and Coinone is on hold until the law passes. Representative Park pointed out the delays in system construction and mentioned the challenges of identifying income from various types of transactions. Im responded that they are preparing in consultation with the exchanges. Regarding the timing of tax implementation, Im explained that profits from transactions occurring in 2027 will be subject to taxation, but the reporting will take place in May 2028.

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