RedotPay Exits South Korea as Crypto Tax Clock Ticks

RedotPay has halted new user onboarding in South Korea, a move that's significant given the country's upcoming crypto taxation regime. The company stopped issuing physical and virtual cards to newcomers, just days after terminating its Korean affiliate and influencer referral programs.

This is RedotPay's second pullback in the country. The first occurred in May 2025, but only affected new physical card issuances. This time around, both physical and virtual card applications are unavailable to new users.

The move comes ahead of South Korea's crypto taxation law taking effect in 2027, which will require stablecoin spending to be taxed as a capital gain. RedotPay was the most popular product for this type of usage, with its app downloaded around 25,000 times between January 2025 and July 2026.

The blocking of virtual cards is particularly noteworthy, given that they were the growth engine for the platform. This suggests a compliance calculation rather than a cost-saving decision. The move signals that offshore payment firms are increasingly aware of the risks associated with serving markets without local licensing once tax authorities start looking for gaps.