South Korean investors shift to offshore crypto futures ahead of tax implementation

South Korea will begin taxing digital assets next year, prompting investors to explore offshore perpetual futures as a means to reduce tax liabilities. On Oct. 16, industry sources reported that investor communities are discussing a '1x long strategy on offshore exchange futures.' This strategy involves taking long positions in perpetual futures on platforms like Binance and Bybit, using 1x leverage, rather than purchasing Bitcoin on South Korean exchanges. Under current income tax laws, taxable income will include gains from buying and selling digital asset spot holdings or lending them out. However, profits from offshore perpetual futures are not explicitly categorized as taxable, creating a potential tax-saving opportunity. An industry official noted that the early sharing of these avoidance strategies indicates a shift in trading volume, and once taxation is enforced, the migration of users to offshore exchanges may increase.

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