"Concerns over tax gaps as stablecoin payments spread…Consider issuing cash receipts"

There are views that tax issues may arise as the adoption of stablecoins (virtual assets whose value is linked to fiat currency) accelerates.

On the 7th (Korean time), according to the industry, Bae Jin-su, a research fellow at the Korea Institute of Finance, stated, "If stablecoin payments increase, the tax base for value-added tax and business income tax could be eroded," and said, "An obligation to issue cash receipts should be applied to stablecoins and they should be included in the tax data submission system."

Specifically, he pointed out, "If funds are moved to overseas exchanges via stablecoins to trade virtual assets (cryptocurrencies), it becomes difficult to ascertain the acquisition and transfer values that serve as tax bases, which could create problems for taxation," adding, "When the other income tax on virtual assets is introduced in 2027, there could be a phenomenon of tax avoidance through moving to overseas exchanges."

He also said that the increase in the use of personal wallets due to the spread of stablecoins could cause taxation problems. He added, "Personal wallets make it difficult under tax law to determine a location, creating a gap in tax assessment," and, "Regulations are needed to clarify the criteria for determining the location of decentralized wallets."