Virtual Asset User Protection Act Enforces Supervision Fees on Cryptocurrency Providers

With the implementation of the Virtual Asset User Protection Act, cryptocurrency providers like Upbit, Bithumb, and Coinone must pay supervision fees based on operating revenue. This change follows amendments to the ‘Enforcement Decree of the Act on the Establishment of the Financial Services Commission’ and the ‘Regulations on the Collection of Financial Institution Share,’ which now include virtual asset operators under the Financial Supervisory Service’s inspection scope. The 2024 supervisory fee for financial investment companies is set at 0.014% of operating revenue. Upbit will pay approximately KRW 141 million based on Dunamu’s 2023 revenue. Other exchanges like Bithumb and Coinone will pay less, while Korbit may be exempt due to lower revenue. The supervision fee, a quasi-tax for financial oversight, accounts for 75.1% of the Financial Supervisory Service’s budget. Despite industry expectations for a delay, the fee imposition was expedited due to the Act’s implementation. Unlike e-finance companies, which had a phased fee introduction, the rapid growth of the crypto market necessitated an earlier fee imposition. Most exchanges, except Upbit and Bithumb, operate at a loss, making the supervision fee a financial burden based on their revenue.

Read More : Police to Establish Standardized Procedures for Seizing and Managing Cryptocurrencies Amid Rising Cybercrimes