South Korean Ministry of Finance: Verify that the encrypted assets obtained from rewards are calculated based on the market price at the time of acquisition

The South Korean Ministry of Finance recently interpreted that the acquisition cost of encrypted assets obtained through participating in blockchain verification (i.e. verification rewards) should be calculated based on the market price at the time of acquisition. On July 9th, the Ministry of Finance stated in its response to the National Tax Law Information System that if domestic enterprises cooperate with foreign platforms to participate in the verification and generation of new encrypted assets and receive rewards, the value of these assets must be based on the market price at the time of acquisition. This verification reward usually occurs in PoS networks, where users participate in block verification by pledging encrypted assets and receive additional encrypted assets as compensation. The Ministry of Finance pointed out that the valuation of such assets should follow the relevant provisions of the Implementation Order of the Corporate Tax Law, and should be judged based on specific contract terms and asset generation methods.