Taxation Gap on Perpetual Futures Could Have Devastating Impact on Domestic Industry

Park Sang-hyuk, editor of Digital Asset, stated that the taxation gap on virtual asset perpetual futures could deal a fatal blow to the domestic industry. Perpetual futures are unique derivatives in the digital asset market that have no expiration date and can be traded 24/7. During an appearance on Sampro TV on the 12th, Park explained that the current Capital Markets Act and Income Tax Act do not define perpetual futures, making it impossible to tax them even if digital asset taxation is implemented in 2027. He noted that the trading volume of perpetual futures on Binance exceeds six times that of spot trading, and as of September, the access rate to Binance from Korea is over 10%. This indicates that there are many users investing in perpetual futures domestically, and if these investors are not taxed, spot investors may also move to overseas exchanges. Park warned that if the taxation loophole is not addressed, it would lead to a devastating impact on the domestic industry and only activate the overseas digital asset market.

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