Is crypto ban in Korea?

The reason for this ambiguity stems from the nature of cryptocurrencies themselves. Unlike traditional cash or financial assets, cryptocurrency transactions do not neatly fit into existing tax categories, leading to a lack of clear guidelines for taxation.

Cryptocurrencies hold a unique position in South Korea's legal framework, where they are not recognized as official legal tender. Despite this, cryptocurrency exchanges operate legally within the country, offering a platform for users to buy, sell, and trade digital assets.

However, these exchanges are not without constraints. They are subject to a rigorous regulatory structure designed to ensure compliance, transparency, and stability within the crypto market. The oversight is aimed at protecting investors and preventing illicit activities.

One aspect of crypto operations in South Korea that remains ambiguous is taxation. Cryptocurrency transactions fall into a grey area when it comes to taxation, posing challenges for both individuals and businesses engaging in such activities.

As a result, cryptocurrency transactions in South Korea are currently tax-free. This lack of taxation has been a source of debate and discussion among policymakers, investors, and the public, with varying opinions on whether this should continue or change.