Summary:
- New Fee Requirement: Major cryptocurrency exchanges in South Korea, such as Upbit, Bithumb, and Coinone, will now have to pay a supervisory fee under the newly enforced Virtual Asset User Protection Act.
- Estimated Fees: The estimated fee for these leading exchanges is around 300 million won ($219,992), based on their operating income.
- Exemptions: Korbit is excluded from this requirement due to its lower operating revenue of approximately 1.7 billion won ($1.2 million) last year. Only businesses with an operating revenue of 3 billion won or more are subject to this fee.
In a move to enhance regulation and oversight in the cryptocurrency sector, South Korea has introduced a new supervisory fee for major crypto exchanges under the Virtual Asset User Protection Act. This new legislation mandates that leading exchanges, including Upbit, Bithumb, and Coinone, pay a supervisory fee estimated at around 300 million won ($219,992). The fee is calculated based on the exchanges’ operating income and serves as compensation for the supervision and services provided by the Financial Supervisory Service (FSS).
This new financial obligation is expected to impact the financial operations of these exchanges, adding an additional layer of compliance costs. Interestingly, Korbit, another significant player in the market, is exempt from this fee due to its lower operating revenue of approximately 1.7 billion won ($1.2 million) last year. The fee is only applicable to businesses with an operating revenue of 3 billion won or more.
As South Korea continues to refine its regulatory framework for digital assets, the introduction of this supervisory fee underscores the government’s commitment to ensuring a secure and transparent environment for cryptocurrency users. However, it also raises questions about the financial impact on smaller platforms and the broader industry dynamics.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
