TLDR
- South Korea’s Financial Services Commission plans a consolidated Digital Asset Basic Act with the ruling Democratic Party.
- Ten pending digital asset and stablecoin bills could be merged into one government-backed proposal this year.
- The 22% crypto tax is still scheduled to start on January 1, 2027, despite opposition efforts to repeal it.
- A 2.5 million won annual exemption would apply before crypto income becomes taxable.
- Stablecoin issuer ownership rules and exchange shareholding limits remain unresolved.
South Korea is moving ahead with plans for a new crypto law. The Financial Services Commission told the National Assembly it wants to build a single Digital Asset Basic Act.
This would happen together with the ruling Democratic Party. The announcement came ahead of a policy briefing on July 29.
Ten separate digital asset and stablecoin bills are already sitting in the National Assembly. The FSC wants to combine them into one proposal that lawmakers can negotiate from.
What the New Bill Would Cover
The planned law would set rules for stablecoins, exchanges, and disclosure requirements. It would also cover internal controls and system resilience for digital asset businesses.
The bill would define what counts as a digital asset business. It would also set standards for how exchanges can operate and what they must disclose to users.
FSC Chairman Lee Eog-weon has said digital asset legislation should be finished during 2026. He wants stronger anti-money-laundering rules included for stablecoins.
South Korea already has a law called the Virtual Asset User Protection Act. That law mostly covers custody and unfair trading practices.
The new bill would go further. It would regulate issuers, service providers, and the broader market structure.
Key Disputes Still Unresolved
One major sticking point is who can issue stablecoins backed by the Korean won. Some want issuers controlled by bank-led groups holding at least 50% plus one share.
The Bank of Korea supports giving banks a leading role. It argues that stablecoins could affect monetary and financial stability.
Other lawmakers and industry groups want to allow non-bank companies to issue stablecoins too. They would need licenses and reserve requirements.
Lawmakers also have not decided whether ownership limits should apply to large crypto exchanges. This question was discussed in March but never settled.
Separately, the FSC has not announced when it will file the new bill. The wording is still being worked out.
While the new bill moves forward, a fight over crypto taxes continues. Opposition lawmaker Song Eon-seok introduced a bill in March to repeal the tax entirely.
His proposal would remove the section of the Income Tax Act that taxes crypto transfers and lending income. The opposition argues it is unfair to tax crypto investors while most stock gains stay tax-free.
Under current law, annual crypto income above 2.5 million won will face a 20% national tax plus a 2% local tax. This is set to begin January 1, 2027.
The tax has already been delayed three times since it was first planned in 2022. The government and ruling party still support moving forward with it in 2027.
Tax officials say the National Tax Service has created a dedicated digital asset unit. It is preparing guidance for when the tax takes effect.
A public petition to repeal the tax has more than 50,000 signatures. It is waiting for review by a petitions subcommittee.
Both the repeal bill and the new digital asset framework still need committee review. Neither panel had been fully set up when the July 29 briefing was announced.
Unless lawmakers step in, the 22% tax will begin on January 1, 2027. No crypto price movement has been tied to either of these legislative developments so far.
