Key facts
- South Korea's Financial Services Commission is planning a consolidated Digital Asset Basic Act.
- The act will cover stablecoins and exchanges.
- Opposition lawmakers are seeking to repeal the crypto income tax.
- The crypto income tax is set at 22%.
- The crypto income tax is scheduled to take effect in 2027.
South Korea's Financial Services Commission (FSC) is reportedly developing a comprehensive Digital Asset Basic Act. This new legislation is intended to consolidate existing regulations and establish a unified framework for digital assets, with a specific focus on stablecoins and cryptocurrency exchanges. The move signals a proactive approach by the South Korean government to regulate the rapidly evolving digital asset landscape.
In parallel with the regulatory efforts, opposition lawmakers are actively campaigning for the repeal of the country's planned 22% cryptocurrency income tax. This tax is slated to take effect in 2027 and has been a point of contention among crypto stakeholders. Proponents of the repeal argue that the tax could hinder the growth of the domestic cryptocurrency market and potentially drive businesses and investors to other jurisdictions. The push to repeal the tax highlights a division in political and economic approaches to digital assets within South Korea.