South Korea is reportedly planning to impose a tax on recipients of cryptocurrency airdrops at a rate of 10% to 50%, according to a report by the Digital Times Monday, citing the Ministry of Strategy and Finance.In the cryptosphere, an airdrop is a marketing scheme in which a startup will provide free tokens to wallet addresses to raise awareness of the new coin.The so-called gift tax 'will be levied on the third party to whom the virtual asset is transferred free of charge,” a government official said in response to a query, as quoted by the Digital Times.Furthermore, the recipient must file a gift tax return within three months of the airdrop. And the gift tax should be considered on a case-by-case basis, an official from the tax industry told the Digital Times.South Korea, meanwhile, is joining a growing list of countries boosting efforts to regulate crypto via taxation, including the U.K., U.S. and India.Last year, South Korean officials reportedly delayed plans for a 20% crypto tax to 2023.
