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The Financial Supervisory Service (FSS) is considering supervision fees for virtual asset operators ahead of the Virtual Asset User Protection Act (VAWA) implementation next month. The FSS argues this fee is necessary for the new supervision and inspection framework. However, the virtual asset industry finds the fee burdensome.
The FSS is establishing a system to impose these fees as per Article 18 of the VAWA, which allows the Financial Services Commission to delegate tasks to the FSS. The final decision on the fee, which covers the cost of supervision services, will be made later this year.
Industry expectations were that such fees would take years to implement, based on the precedent of e-finance and P2P companies. However, the FSS is expediting this process. There are concerns about fairness and how the fee will be calculated—either by revenue or operating income.
Cryptocurrency operators worry that the fee, based on operating revenue, will be a significant burden, especially as many are already operating at a loss. Only Upbit and Bithumb are profitable; others, like Coinone and Gopax, have posted substantial losses. The fee exemption threshold is less than KRW 3 billion in revenue, which most exchanges exceed, increasing their financial strain.
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