Key facts
- South Korea's Financial Services Commission plans to introduce a consolidated Digital Asset Basic Act.
- The bill will address stablecoin issuance, digital asset business rules, and exchange requirements.
- Multiple digital asset bills are currently pending in Parliament.
- Opposition lawmakers are seeking to repeal the 22% crypto income tax scheduled for 2027.
- The proposed tax applies to annual crypto income exceeding approximately $1,700.
South Korea's Financial Services Commission (FSC) is reportedly preparing to introduce a comprehensive Digital Asset Basic Act, aiming to consolidate existing proposals and establish a clear regulatory framework for the cryptocurrency market. This move comes after months of delays and ongoing disagreements within Parliament regarding key legislative elements. The proposed bill is expected to cover the issuance and circulation of stablecoins, establish rules for digital asset businesses, and set standards for exchange entry requirements, internal controls, and system resilience.
Currently, ten separate digital asset and stablecoin bills are pending in the National Assembly, highlighting the fragmented legislative landscape. Significant disputes persist, particularly concerning whether stablecoin issuers should be majority bank-owned and the imposition of ownership limits on major cryptocurrency exchanges. The FSC has not yet provided a timeline for the introduction of the consolidated bill.
In parallel, opposition lawmakers are actively pursuing the repeal of South Korea's planned 22% crypto income tax, which is slated to take effect on January 1, 2027. A bill introduced by People Power Party lawmaker Song Eon-seok seeks to remove the provisions taxing income derived from transferring or lending digital assets. This initiative is supported by a petition signed by over 50,000 individuals. The opposition argues that taxing cryptocurrency gains while most ordinary stock investors remain exempt is inequitable. Despite these efforts, the Finance Ministry has indicated that the tax will proceed as planned.