RedotPay Shuts Korean Operations Ahead of Crypto Tax Crackdown

RedotPay has stopped issuing both physical and virtual crypto cards to new users in South Korea. This is its second pullback from the Korean market, with the first one happening in May 2025 for only physical cards. The move comes just months before South Korea's crypto taxation regime begins.

The company ended its Korean affiliate and influencer referral programs on September 7, days before this block surfaced. RedotPay was a popular platform that allowed users to load Tether (USDT) into an app and add a virtual card to Apple Pay or Samsung Pay, enabling them to spend at any Visa merchant.

The retreat of RedotPay is significant because South Korea plans to begin taxing crypto gains next year. Stablecoin spending is taxable too, as every card swipe can quietly realize a gain. The problem for authorities is that transactions on an offshore Hong Kong platform cannot easily be tracked in real time.