South Korean Bithumb Airdrop Recipients Hit With Tax Bills, Exchange Responds

South Korean cryptocurrency exchange Bithumb has recently faced backlash after airdrop participants were hit with large tax bills. An airdrop is a distribution of a cryptocurrency to numerous wallet addresses to boost its circulation. However, under South Korea’s cryptocurrency tax laws, these airdrops are categorized as ‘other income’, making them subject to a 22% tax if the value exceeds 2.5 million won (approximately $2,100).

In response to concerns raised by users, Bithumb