Stocks are tax-exempt, only coins are taxed… Is market distortion becoming a reality? | Seo Dong-ju, Kim Dong-hwan, Kim Nam-ung, Populus CEO [Crypto PLUS]

Summary

Populus CEO Kim Nam-ung discusses the adverse market effects of Korea's planned crypto tax, highlighting how the tax-free status of stocks will distort capital flows into companies like Strategy (MSTR) and crypto ETFs, harming domestic exchanges and regulatory coherence.

• Korea plans to impose a crypto capital gains tax in 2026 while stocks remain tax‑exempt, creating a stark tax asymmetry.
• This asymmetry is expected to drive Korean investors toward tax‑efficient vehicles such as US‑listed Strategy (MSTR) and eventually US spot crypto ETFs.
• Domestic crypto exchanges like Upbit and Bithumb are likely to lose trading volume and revenue, weakening Korea's crypto industry.
• The regulatory distortion may prompt even more restrictive rules, such as banning Korean DAT companies or further limiting corporate crypto accounts.
• Kim argues that the government should delay or abolish crypto taxation until a comprehensive, distortion‑free framework is designed.
• The discussion underscores the risk of unintended consequences when tax policy collides with an industry still seeking regulatory clarity.