Miami — Decentralized Finance (DeFi) is not dying but instead moving deeper into the financial mainstream alongside the rise of AI agents, crypto executives participating in the Securing the Next Decade of Decentralized Finance panel Thursday at Consensus Miami 2026.

“Crypto is absolutely hurtling into the mainstream,” said Hunger Horsley, co-founder and CEO of Bitwise Asset Management. “Stablecoins, tokenized assets and DeFi are part of that.”

The panel came weeks after a series of DeFi North Korean hacker exploits, including Drift Protocol and Kelp DAO, which resulted in roughly $600 million in losses, drawing criticism over the sector’s security.

DeFi is “an inevitable future,” said Yoni Assia, co-founder and CEO of eToro, dismissing claims that DeFi is fading, much less dead. The technology underpinning lending protocols and smart contracts is already proving itself at scale, he argued.

“There’s $100 billion on lending markets or more,” Assia said. “The technology stack is mind-blowing, and it’s being battle-tested all the time.”

AI agents are speeding up interest

Much of the discussion focused on how AI agents are accelerating interest in crypto-native financial infrastructure.

Guy Wuollet, general partner at a16z Crypto, argued that autonomous AI systems will ultimately require financial rails that look “either literally DeFi or a lot like DeFi.”

“If we believe AI agents are going to be economically important actors, we need a financial system built for them,” Wuollet said.

Assia described experimenting with AI agents capable of independently opening wallets, bridging assets, researching trades and executing transactions across prediction markets and DeFi protocols. “DeFi and AI are both native to each other,” he added.

Horsley compared DeFi’s role for AI agents to the rise of APIs and open-source software in traditional internet infrastructure. “You could think of DeFi as enabling a lot of financial services for AI agents,” he said.

The executives also agreed that institutional attitudes toward crypto and DeFi are changing quickly.

Horsley said Bitwise, which manages roughly $15 billion in assets, is now receiving requests from regulated fintech firms and neobanks looking for compliant ways to offer DeFi-related products to customers.

“The institutions and corporates are arriving,” Horsley said. “They finally feel able to interact with the space.”

Wuollet said many large financial firms are initially approaching blockchain infrastructure less for crypto speculation and more for operational efficiency.

“Finance is going through a digital transformation,” he said. “Institutions want to replace their backend and core ledger with a blockchain.”

The panelists said the convergence between traditional finance, tokenized assets, DeFi and AI agents is likely to accelerate over the coming years as institutions become more comfortable operating onchain.

Palm Beach, Florida, May 7, 2026 — The Crypto Polo Cup (CPC) returns for a fourth edition, staged in partnership with Consensus Miami. The May 9 event, held at the Santa Clara Polo Club, is invitation-only and aims to convene more than 500 guests from institutional finance, venture capital, and the broader digital-asset ecosystem for a day that fuses sport, networking, and industry dialogue.

Since its inception in Palm Beach in 2022, the CPC has positioned itself as a distinctive convergence point for leaders spanning technology, finance, media, and crypto. The 2026 edition reinforces that role, offering two professional polo matches and curated opportunities for high-signal conversations among senior executives, policymakers, and founders during Consensus Miami week.

Key takeaways

• The 2026 Crypto Polo Cup is an invite-only event expected to draw 500+ attendees for a day of polo and elite networking alongside Consensus Miami.
• Two professional polo matches will anchor the agenda, providing a unique backdrop for deal-making and relationship-building between crypto-native firms and traditional finance players.
• A broad set of industry partners signals strong backing from across the crypto and tech infrastructure ecosystem, including Binance, Solana Company, CakeWallet, Unicoin, and more.
• The ambassador roster spans government candidates, exchange leadership, venture capital, media, and digital-asset initiatives, underscoring CPC’s cross-sector reach.

Event format and significance

The Crypto Polo Cup has evolved into a high-end meet-up that blends sport with strategic conversations. The 2026 edition retains the format of two professional polo matches, offering a formal setting where attendees can engage with senior figures from the financial sector and Web3 innovation communities while enjoying a premium networking environment. The event’s alignment with Consensus Miami places CPC within one of the industry’s busiest weeks for announcements, partnerships, and regulatory dialogue, potentially accelerating collaboration across ecosystems.

Nikita Sachdev, founder and CEO of Luna PR, described CPC as a global gathering point where meaningful relationships are formed and real collaboration emerges. “We are proud to bring CPC back to Florida, where it all began, and to welcome our global community during Consensus Miami week,” she said. The organizer’s emphasis on cultivating intimate, high-level engagement positions CPC as a venue where executives can move beyond ephemeral hype to align on strategic initiatives.

Partners and ecosystem alignment

Support for this year’s Cup comes from a curated roster of industry partners that reflects continued confidence in CPC’s role as a networking hub for crypto, technology, and finance. Partners listed for 2026 include:

• TEXITcoin
• Binance
• Naoris
• AMINA
• Solana Company
• CakeWallet
• Unicoin
• Quantum
• CoinRoutes
• Sailo Tech

The breadth of backing underlines a shared interest in events that can bridge investor communities, liquidity venues, and product developers. While partnerships like these help elevate CPC’s profile, they also reflect the broader industry trend of coordinating in-person gatherings as a supplement to digital communications, potentially expanding deal flow and strategic partnerships beyond traditional crypto conferences.

Ambassadors: cross-sector reach and influence

The 2026 ambassador lineup illustrates CPC’s intent to situate crypto conversations within a wider spectrum of influence. Ambassadors span government, exchange leadership, venture capital, media, and digital-asset innovation, signaling a deliberate effort to connect policy, finance, and technology narratives. The list includes:

• Michael Carbonara — Congressional Candidate, FL-22
• Rachel Conlan — Global CMO, Binance
• Yana Prikhodchenko — CEO, Cointelegraph Global
• Tess Hau — Founder, Tess Ventures
• Silvina Moschini — Founder, Unicorn Hunters
• Michael Terpin — Founder and CEO, Transform Ventures
• Matthew Jason Nordgren — Founder and Managing Partner, Arcadian Capital
• Ran Neuner — Founder, Crypto Banter
• Gary Hopkinson — Managing Director, Clear Street
• — Investor Relations Manager, OG Advisory Group

Across this roster, CPC aims to reflect the multistakeholder nature of today’s crypto economy—where public policy, capital markets, media, and technical progress intersect. The presence of a political candidate alongside executives from major exchanges and media brands highlights the event’s ambition to be more than a private gathering; it aspires to shape conversations that could influence industry trajectories and regulatory considerations.

A broader lens: what CPC represents amid a shifting landscape

Beyond the immediate social and networking value, CPC’s 2026 iteration signals a continued push toward more integrated industry events where crypto participants sit shoulder to shoulder with traditional financial players and policymakers. The move to Florida for a fourth edition, while tying into a larger Miami context during Consensus Week, emphasizes geographic and cultural breadth for crypto convenings. It reflects a trend toward events that blend prestige, policy exposure, and investment opportunity, offering attendees a curated space to observe and participate in evolving market dynamics.

For investors and builders, the CPC ecosystem message remains relevant: even as governance debates and regulatory considerations evolve, there remains a persistent appetite for face-to-face interaction that can accelerate due diligence, form partnerships, and catalyze venture opportunities. The partnerships and ambassador lineup point to a deliberate strategy to anchor CPC in a wide network of influence, which could translate into tangible collaboration and capital movement in the near term.

About the Crypto Polo Cup

The Crypto Polo Cup positions itself as a premier, invitation-only gathering that aggregates leaders from venture capital, blockchain, and emerging technology. Since its 2022 debut in Palm Beach, the event has aimed to provide a venue where investment, innovation, and influence converge to shape the future of Web3 and related technologies. Powered by Luna Media Corp, CPC brings together executives and visionaries who are actively shaping the technology and finance landscapes.

For more information on the event, visit the official site and related channels:

Note: This article is based on information provided by the Crypto Polo Cup organizers and affiliated partners for the 2026 edition.

What to watch next: as CPC progresses through Consensus Miami week, observers will be watching for subsequent partnerships, potential deal announcements, and any additional ambassador activity that could signal shifts in cross-sector collaboration between crypto, finance, and policy circles.

Key Takeaways

• ARK Invest acquired approximately 255,804 Shopify shares valued at $32.6M on May 5, 2026, following impressive first-quarter results
• The e-commerce platform delivered Q1 revenue of $3.17B, representing 34.3% annual growth, while surpassing $100B in GMV for the first time ever
• ARK divested $15.6M worth of AMD shares on May 5, extending its ongoing reduction in chip stock holdings
• AI-generated traffic to Shopify’s merchant stores experienced an 8-fold increase compared to last year
• Additional May 6 transactions included a $7.9M Tempus AI purchase and another $6.7M AMD sale

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On May 5, 2026, Cathie Wood’s ARK Invest executed one of its most significant recent transactions, accumulating approximately 255,804 Shopify shares distributed across three exchange-traded funds.

Shopify Inc., SHOP

The aggregate investment totaled roughly $32.6 million. ARK Innovation ETF accounted for the lion’s share at $20.7 million, constituting 7.8% of that particular fund’s total market capitalization.

Just one day earlier, on May 4, ARK had initiated Shopify purchases worth $6.6 million through the identical ETF vehicle.

This strategic accumulation followed Shopify’s release of first-quarter 2026 financial results. The company posted revenue of $3.17 billion, marking a 34.3% surge versus the corresponding quarter in 2025.

For the first time in company history, Shopify’s gross merchandise volume exceeded $100 billion within a three-month period. The platform achieved free cash flow margins of 15%.

Merchant solutions generated $2.42 billion in revenue, climbing from $1.74 billion year-over-year. Subscription solutions contributed $750 million, up from $620 million in the prior year period.

According to CFO Jeff Hoffmeister, the performance demonstrated “broad-based growth across geographies, merchant sizes, and channels.” Company leadership projected second-quarter revenue expansion in the “high 20s” percentage range.

Artificial Intelligence Integration at Shopify

During the quarterly earnings discussion, Shopify President Harley Finkelstein characterized the company as having “entered the AI era with a clear edge.” He highlighted two decades of accumulated commerce intelligence as a sustainable competitive moat.

Artificial intelligence-powered traffic to Shopify’s merchant ecosystem expanded 8-fold on an annual basis. Currently, AI systems generate more than half of Shopify’s proprietary codebase. The population of enterprise merchants processing over $100 million in GMV has approximately doubled within a two-year timeframe.

Shopify has partnered with Google to develop the Universal Commerce Protocol, an open-standard framework that counts Amazon among its participants.

ARK Maintains AMD Reduction Strategy

While accumulating Shopify positions, ARK persisted in divesting Advanced Micro Devices holdings. On May 5, the firm liquidated 45,917 AMD shares worth approximately $15.6 million across its ARKK, ARKW, and ARKF investment vehicles.

AMD stock has appreciated roughly 96% year-to-date on the strength of its own robust earnings performance.

The following day, May 6, ARK disposed of an additional 18,909 AMD shares through ARKK, representing approximately $6.7 million in value.

During that same trading session, ARK accumulated 145,794 Tempus AI shares across ARKK and ARKG ETFs, totaling $7.88 million. The firm also added 28,220 Intellia Therapeutics shares to ARKK, valued at $375,608.

ARK liquidated 61,351 Twist Bioscience shares across ARKK and ARKG for $3.48 million on May 6, extending a divestment pattern in that position that commenced during the prior week.

Recent disclosure documents indicate ARK’s portfolio is transitioning toward enterprises deploying AI in practical commercial applications, while trimming exposure to semiconductor equities that have already delivered substantial returns year-to-date.

Miami — Bitmine (BMNR), the largest Ethereum treasury firm, may slow the pace of its ether (ETH) accumulation as the firm is inching closer to reaching its accumulation goal, Chairman Tom Lee said Thursday at Consensus 2026 in Miami.

The company, which holds over 5.1 million ETH worth around $11.9 billion at current prices, originally expected it would take five years to accumulate 5% of the ETH supply, Lee said. Instead, the company held 4.29% as of this week, less than a year after launching its strategy.

“At our current buying pace of 100,000 ETH a week, we’re going to be there [at 5%] in like six weeks,” Lee said during a keynote presentation. “I think we’re deciding perhaps we want to accumulate at a somewhat slower pace.”

The comments mark a shift in tone for Bitmine, which has remained one of the few large digital asset treasuries still actively buying crypto while many rivals paused accumulation during the market downturn. Strategy (MSTR), the largest corporate bitcoin holder and another consistent crypto buyer over the past months, indicated this week it may sell bitcoin to cover dividend obligations, per Executive Chairman Michael Saylor’s suggestion.

Lee said Bitmine remains profitable through staking income and cash generation, reducing pressure to liquidate crypto holdings during volatile markets. About 85% of Bitmine’s ETH holdings are staked, generating annualized staking revenue exceeding $300 million, or roughly $1 million per day.

The firm is also evaluating other uses for capital, including a recently announced $4 billion share repurchase program and further expansion of MAVAN, its institutional staking platform launched in March. The service is currently staking about $14 billion in digital assets, including ETH, Solana (SOL), and Canton (CC), according to Lee.

Beyond Ethereum, Lee highlighted Bitmine’s investments tied to AI and consumer platforms, including Eightco Holdings (ORBS) and MrBeast’s Beast Industries. He described Eightco as one of the few publicly traded companies offering indirect exposure to OpenAI and Sam Altman’s World project.

Throughout his keynote, Lee reiterated his view that Ethereum stands to benefit from two major trends: the tokenization of financial assets and the rise of AI systems relying on public blockchains for payments and verification.

Read more: Bitcoin ending May above $76,000 would confirm new bull market, Tom Lee says

Prediction marketplace Kalshi has reached a $22 billion valuation after closing a $1 billion Series F funding round, underscoring growing venture capital appetite for prediction markets amid surging retail adoption.

The new valuation doubles Kalshi’s worth from just five months ago. The funding round was led by Coatue Management, with participation from Andreessen Horowitz, Sequoia Capital, Morgan Stanley and Ark Invest.

The raise comes as investors increasingly view prediction markets as one of the fastest-growing segments of digital finance. Andreessen Horowitz’s crypto unit, a16z crypto, recently raised $2.2 billion for its latest fund and identified prediction markets as a major investment theme.

Kalshi has emerged as one of the industry’s dominant platforms. A company spokesperson told Bloomberg that Kalshi’s annualized revenue run rate has surpassed $1.5 billion.

Unlike rival Polymarket, which operates on decentralized blockchain infrastructure, Kalshi runs a centralized and federally regulated marketplace that allows users to trade on the outcomes of real-world events, including elections, economic data releases and sports. 

Together, Kalshi and Polymarket accounted for the bulk of the more than $25 billion in prediction market trading volume recorded last month.

Prediction market volumes by platform. Source: Bitget Wallet

Kalshi has also expanded its crypto ambitions. The company recently appointed John Wang as its head of crypto, and he told Forbes that, “We would like to have Kalshi’s prediction markets in every large crypto app.”

Related: Polymarket odds of Hormuz Strait traffic normalizing by end of May spike to 73%

Regulatory scrutiny intensifies as prediction markets expand

The latest wave of venture backing comes as Wall Street analysts argue that prediction markets are evolving beyond retail speculation into institutional financial tools.

In a recent research note, Bernstein said prediction markets are entering an “institutional era,” driven by demand for bespoke block trades and custom event contracts that allow firms to hedge against specific macro and geopolitical risks.

At the same time, the sector faces mounting legal and political scrutiny in the United States.

According to NPR, Kalshi is involved in at least 19 federal lawsuits over whether its event contracts violate state gambling laws.

States including Massachusetts, New Jersey, Arizona, Nevada, Illinois and Connecticut have challenged Kalshi’s operations, arguing that some of its sports and event-based contracts amount to unlicensed gambling.

The political pressure has also intensified in Washington. Democratic lawmakers have called for tighter oversight of prediction markets following concerns over “suspicious trades” tied to geopolitical events.

Source: Stephanie Cutter

In response, Kalshi has expanded its policy and regulatory bench. The company recently brought on former Obama staffer Stephanie Cutter as a policy adviser, a move widely seen as an effort to strengthen its relationships in Washington and navigate the growing scrutiny surrounding prediction markets.

Related: Crypto Biz: Capital has no consensus

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Crypto was supposed to create value. In April 2026, most of it is destroying it.

Arbitrum, once the crown jewel of Ethereum’s Layer-2 ecosystem, is trading at $0.11, down 95% from its all-time high of $2.39. The network is growing. TVL crossed $20 billion. Stablecoin supply on Arbitrum hit $8 billion. The El Dorado partnership onboarded a million users across Latin America. None of it moved the price in any meaningful direction.

Aptos just announced one of the most aggressive tokenomics overhauls in crypto history, a 2.1 billion APT hard cap, staking rewards halved to 2.6%, gas fees raised tenfold with full burns, and 210 million APT permanently locked. The governance proposal passed almost unanimously. The market responded with indifference. APT sits near $1, still weighed down by monthly token unlocks that will not ease until October.

Meanwhile, a crypto casino called Spartans.com quietly generated $40 million in Gross Gaming Revenue during its beta phase, processed over $1 billion in wagers, and climbed to 10th in the global rankings. Not by asking anyone to hold a token. By paying them cash on every bet.

The contrast raises a question that the broader market is not comfortable asking. When infrastructure tokens bleed despite strong fundamentals, and a gambling platform thrives by returning immediate value, where is the real utility in crypto right now?

Arbitrum – Strong Network, Broken Token

Arbitrum’s fundamentals tell one story. Its price tells another. The network continues to lead the Ethereum L2 space in developer activity, DeFi depth, and institutional expansion. The Arbitrum Everywhere initiative targets institutional finance. Stylus enables smart contracts in Rust, C, and C++. The Orbit framework supports custom rollups and Layer-3 chains.

But the ARB token hit an all-time low of $0.08 on March 29th. A 92-million ARB token unlock on April 16th added further supply pressure. Capital is rotating out of altcoins and into Bitcoin, with BTC dominance climbing to 59.2%. The Altcoin Season Index sits at 35, deep in risk-off territory.

For holders, the thesis remains intact. The token does not. Every positive development gets absorbed by macro headwinds and dilution from vesting schedules. ARB is down 95% from peak. The network generates $26,000 in daily fees. The gap between infrastructure value and token value has never been wider.

Aptos – Deflationary Ambition, Inflationary Reality

Aptos made a bold move. The tokenomics overhaul introduced a hard cap, slashed emissions, and committed to burning all gas fees. Decibel, the chain’s on-chain perpetuals DEX, could burn over 32 million APT annually at scale. Governance Proposal 183 passed with 335.2 million APT voting in favour. The intention is clear, shift from subsidy-driven growth to a performance-driven, deflationary model.

The problem is timing. The four-year vesting schedule for early investors and core contributors does not end until October 2026. Monthly unlocks, like the 11.31 million APT released on April 12th, continue to flood the market. Around 69% of supply is staked, cushioning some sell pressure, but the overhang remains real. APT is trapped between a structurally bullish redesign and a mechanically bearish supply calendar.

For holders, the inflection point is October. Until then, conviction requires patience and tolerance for continued dilution.

Where Spartans Fits

Both Arbitrum and Aptos ask investors to wait. Wait for adoption to reflect in price. Wait for unlocks to end. Wait for macro conditions to stabilise. Spartans asks players to bet, and pays them back immediately.

The 33% instant CashRake returns up to 3% cashback on every losing bet and up to 33% of the house edge on every wager, win or lose. Instantly. In cash. The $7,000,000 monthly leaderboard, $5 million for first place, is the largest competitive prize pool in online gambling history. Daily leaderboards with $25,000 in prizes run every 24 hours. The platform accepts both crypto and fiat, operates without a native token, and processes withdrawals on-chain with zero delays.

Spartans processed $1 billion in wagers during beta. It pulled in $100 million in deposits. It converted 27,000 first-time depositors in two months. It ranked 10th globally, all before its global launch on August 1st. No token. No vesting schedule. No dilution. Just a transparent rewards model that returns value on every single wager.

The Value Question

The crypto market in 2026 is bifurcating. On one side, infrastructure tokens with genuine utility and growing networks that cannot translate fundamentals into price performance. On the other, platforms like Spartans that skip the token model entirely and deliver immediate, tangible returns to users.

Arbitrum’s network works. Its token does not, yet. Aptos redesigned its economics. The market has not priced it in, yet. Both require time. Both require patience. Both require faith that fundamentals eventually win.

Spartans requires none of that. It requires a bet. And it pays you 33% back whether you win or lose.

Find Out More About Spartans:

Website: https://spartans.com/

Instagram: https://www.instagram.com/spartans/

Twitter/X: https://x.com/SpartansBet

YouTube: https://www.youtube.com/@SpartansBet

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Disclaimer: This is a Press Release provided by a third party who is responsible for the content. Please conduct your own research before taking any action based on the content.

Key Takeaways

• Hedge fund legend Paul Tudor Jones believes the AI rally will continue for “another year or two”
• Jones recently increased his exposure to AI stocks through diversified basket investments
• The investor draws parallels between today’s AI surge and Microsoft’s PC revolution in 1981 plus the 1995 internet explosion
• According to Jones, we’re approximately 50–60% through this cycle with potential for 40% additional gains
• A major correction looms when market capitalization reaches 300–350% of GDP, Jones cautions

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Legendary hedge fund manager Paul Tudor Jones maintains a bullish stance on artificial intelligence stocks, asserting the current rally has significant momentum remaining. During his Thursday appearance on CNBC’s “Squawk Box,” Jones revealed he recently expanded his AI equity positions and expects the upward trend to persist.

Jones explained his investment approach focuses on diversified equity baskets rather than concentrated positions. “I’m a macro trader, so I just buy baskets,” he noted.

The billionaire investor drew comparisons between today’s AI revolution and two previous technology-driven productivity explosions. The initial example was Microsoft’s emergence during the early 1980s. The subsequent parallel was the internet’s commercial breakthrough circa 1995.

Jones highlighted Anthropic’s Claude Code launch in January as analogous to Microsoft’s personal computer debut in 1981. According to Jones, both events represented inflection points for widespread commercial implementation.

“Those were both the beginning of productivity miracles that lasted four to five and a half years,” Jones explained.

He calculates the current AI expansion is roughly 50% to 60% mature. Using this framework, he projects the market has “another year or two to run.”

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Echoes of the Dot-Com Bubble

Jones identified striking similarities between current market dynamics and late 1999 conditions, approximately twelve months before technology stocks crested in early 2000. He observed that contemporary valuation ratios and earnings indicators closely resemble that timeframe.

He referenced the forthcoming election cycle and incoming Federal Reserve Chairman Kevin Warsh as catalysts that might maintain accommodative monetary conditions, comparable to how Y2K anxieties constrained the Fed during 1999.

Jones indicated his expectation for an additional 40% market appreciation before reaching a cyclical top.

Caution Flags on the Horizon

While maintaining his optimistic perspective, Jones emphasized substantial downside risks ahead. He suggested that once stock market capitalization climbs to 300% to 350% of gross domestic product, a severe correction becomes probable.

“You just know that there’ll be some breathtaking kind of corrections,” he stated.

Jones additionally expressed apprehension regarding artificial intelligence’s existential threats. He argued that governmental intervention through regulation will become necessary and that unregulated AI development poses genuine risks to civilization.

Jones established and leads Tudor Investment Corporation as founder and chief investment officer. He gained widespread recognition for successfully anticipating and capitalizing on the 1987 Black Monday market crash.

He currently serves as chairman of Just Capital, a nonprofit organization that evaluates U.S. publicly traded companies based on social and environmental performance criteria.

Jones delivered his analysis at a conference prior to his Thursday CNBC interview. He declined to disclose the specific AI securities purchased or precise timing of the transactions.

South Korea will implement a long-delayed tax on cryptocurrency gains, with the levy slated to take effect on January 1, 2027. Finance Ministry officials confirmed the plan during an emergency parliamentary forum on virtual asset taxation in Seoul, marking what appears to be the first public affirmation from the ministry that the crypto tax framework will move forward after successive postponements.

Under the current Income Tax Act, profits from the transfer or lending of virtual assets will be categorized as “other income” starting in 2027. Investors earning more than 2.5 million won annually from crypto activities would be subject to a 22% tax, comprising a 20% national income tax and a 2% local tax. The rule is projected to affect roughly 13.26 million investors. This framework aims to formalize crypto gains within the broader tax system while raising considerations for taxpayers and market participants alike.

According to Edaily, Moon Kyung-ho, director of the Ministry’s income tax division, reiterated that “we will proceed with virtual asset taxation as scheduled in January next year,” signaling a high-level commitment to the January 2027 effective date after a sequence of delays. The discussion occurred at a forum hosted by Representative Park Soo-young of the People Power Party and the Korea Tax Policy Association.

Key takeaways

• The crypto gains tax is scheduled to become effective on January 1, 2027, with profits from transfers or lending treated as other income under the Income Tax Act.
• A 22% tax applies to annual crypto profits above 2.5 million won (20% national tax plus 2% local tax), affecting an estimated 13.26 million investors.
• The National Tax Service is preparing formal guidance and has engaged with five major local exchanges to draft a notice, with legislative review planned in 2026.
• Past delays and political dynamics have persisted, including a prior push by the ruling party to scrap the tax; oversight and readiness remain central concerns for exchanges and firms.
• Separately, proposed AML rule amendments targeting overseas transfers have drawn industry pushback, underscoring compliance feasibility and enforcement questions for major exchanges.

Tax framework and industry implications

The forthcoming tax regime places crypto gains within the broader umbrella of taxable income, reclassifying profits from virtual asset transfers and lending as “other income” starting in 2027. The key numeric thresholds establish a 2.5 million won annual profit floor above which the 22% rate applies, a structure that will influence individual taxpayers, crypto traders, and service providers alike. While the exact revenue impact remains a matter of ongoing analysis, the policy aligns with efforts to normalize crypto activity within a formal tax and regulatory framework, which in turn could affect reporting practices, capital exposure, and financial planning for households and institutions involved in digital asset markets.

Moon Kyung-ho’s remarks underscore a commitment to advancing the tax despite earlier postponements. The administration’s position appears to reflect a balance between revenue considerations, consumer protection, and the practicalities of tax administration. For market participants, this signals that preparatory steps—such as tax accounting for crypto gains, tracking of taxable events, and readiness for reporting obligations—will be essential as the 2027 date approaches.

Guidance development and industry engagement

The National Tax Service is actively shaping the operational framework to implement the new system. In discussions with the five largest domestic exchanges—Upbit operated by Dunamu, Bithumb, Coinone, Korbit, and Gopax—the tax authority is formulating a draft notice intended for legislative review in 2026. Moon clarified in subsequent comments that the guidance would arrive within this year, though not on an immediate schedule, indicating a measured rollout tied to regulatory processes and stakeholder feedback.

The collaboration with exchanges aims to address practical issues such as tax reporting mechanics, record-keeping obligations, and the delineation of taxable events, particularly as it relates to transfer versus lending activities. As the guidance progresses, institutions operating in the Korean crypto space will need to align their compliance programs with the forthcoming regulatory instructions to mitigate risk and ensure consistent reporting across the market.

Regulatory backdrop: delays, politics, and AML considerations

Korea’s crypto policy has longstanding tension between the need for robust oversight and concerns about market readiness and regulatory burden. The tax framework’s repeated postponements—from an originally planned 2025 start to the 2027 date—have reflected political disagreements and industry pushback over implementation preparation and threshold design. In parallel, the ruling party has at times signaled openness to revisiting or even scrapping the tax, highlighting how political dynamics can influence how and when policy takes effect.

In a related regulatory track, amendments to South Korea’s anti-money laundering (AML) rules have sparked significant industry pushback. The proposed changes would require exchanges to flag overseas-linked transfers of 10 million won or more as suspicious activity. Industry association DAXA, which represents 27 registered virtual asset service providers, warned that such a threshold would swell reporting volumes dramatically—from about 63,000 cases last year to as many as 5.4 million, potentially rendering compliance burdens impractical in practice. The Financial Services Commission and the Financial Intelligence Unit have opened a public comment period on these AML changes, with final rules expected in July after the review period, which runs through May 11.

These overlapping regulatory streams—taxation, AML, and exchange operations—collectively shape the environment in which crypto firms, banks, and investors operate. The interplay between tax policy and enforcement priorities will influence licensing considerations, cross-border engagement, and the level of due diligence required for domestic and overseas crypto flows. As enforcement bodies sharpen their oversight, institutions will need to harmonize tax, AML, and KYC processes to address evolving compliance expectations while maintaining operational viability.

Closing perspective

With January 2027 on the horizon, Korea’s crypto tax framework is moving from concept toward operational guidance, anchored by formal notices and stakeholder consultation. The coming months will define the specifics of reporting requirements, the practicalities of compliance for exchanges and individuals, and the balance between regulatory ambition and market practicality. Watching how the National Tax Service finalizes guidance, how the AML amendments unfold, and how political dynamics influence enforcement will be pivotal for institutions navigating Korea’s evolving digital assets regime.