Korean court rules crypto from exchange events is taxable

A South Korean court has rejected a taxpayer’s request to overturn taxes imposed on cryptocurrency received through a trading competition organized by an exchange, Digital Asset reported. The plaintiff argued that the assets constituted prize money from a ranking-based competition with multiple participants, which under South Korea’s Income Tax Act allows 80% of such earnings to be deducted from comprehensive income tax. Tax authorities disagreed and imposed the levy. The court ruled that although the cryptocurrency qualified as prize money, the trading event did not meet the statutory definition of a ranking competition eligible for tax deductions under the law.