South Korea’s Financial Services Commission told the National Assembly ahead of a July 29 policy briefing that it plans to prepare a consolidated Digital Asset Basic Act with the ruling Democratic Party.
Summary
- 10 pending digital asset bills could be folded into a government-ruling party proposal this year.
- 22% crypto tax remains scheduled for January 2027 despite the opposition’s repeal bill and petition.
- 2.5 million won annual exemption would apply before South Korea taxes qualifying digital asset income.
The proposed framework would cover stablecoins, exchanges, disclosures, internal controls and system resilience.
Separately, the National Assembly’s Finance and Economic Planning Committee was scheduled to table an opposition amendment seeking to remove the crypto income tax before its Jan. 1, 2027 start date. Neither proposal has changed current law.
South Korea stablecoin bill would unify 10 proposals
The FSC’s planned bill would establish rules for stablecoin issuance and circulation, define digital asset businesses and regulate their conduct. It would also set exchange entry standards, disclosure requirements and controls intended to protect users and maintain reliable trading systems.
Ten digital asset and stablecoin bills are already pending in the National Assembly. The FSC now plans to coordinate a single government-ruling party proposal that could serve as the main text for negotiations. Chairman Lee Eog-weon previously told the government that digital asset legislation should be completed during 2026, including stronger anti-money-laundering rules for stablecoins.
The plan follows South Korea’s broader effort to create a full digital asset framework. The current Virtual Asset User Protection Act mainly addresses custody, unfair trading and user safeguards. The proposed second-stage law would regulate issuers, service providers and market structure more broadly.
Issuer ownership and exchange limits remain unresolved
The FSC has not completed the bill’s wording or announced a filing date. One central dispute is whether issuers of won-backed stablecoins must be controlled by bank-led consortiums holding at least 50% plus one share. The regulator has repeatedly said that issuer ownership rules have not been finalised.
The Bank of Korea supports giving banks a leading role, arguing that stablecoins could affect monetary and financial stability. In related coverage, crypto.news reported that the central bank also favours a statutory body involving several authorities. Industry participants and some lawmakers support allowing qualified non-bank issuers under licensing and reserve requirements.
Lawmakers must also decide whether ownership caps should apply to major exchanges. The FSC’s Virtual Asset Committee discussed bank-led issuance, ownership dispersion, exchange internal controls, computer-security standards and no-fault compensation in March, but the regulator did not settle those provisions.
Opposition moves to repeal the 22% crypto tax
People Power Party lawmaker Song Eon-seok introduced bill number 2217609 on March 19. It would delete the Income Tax Act provision covering income from transferring or lending digital assets. As crypto.news previously reported, the opposition argues that taxing ordinary crypto investors while most retail stock gains remain exempt is unfair.
Under current law, annual crypto income above 2.5 million won will face a 20% national tax and a 2% local income tax from Jan. 1, 2027. The tax has already been postponed three times since its original 2022 start date.
The government and ruling party support implementation. Tax officials have said the National Tax Service is preparing guidance and has established a dedicated digital asset unit. A separate repeal petition supported by more than 50,000 people is also awaiting committee review.
What happens next for both proposals?
The FSC must complete consultations with the ruling party and other authorities before submitting its consolidated bill. The 10 existing proposals would then be reviewed alongside the new text, with unresolved stablecoin ownership and exchange-shareholding rules likely to shape negotiations.
The tax repeal amendment is expected to move to the Finance and Economic Planning Committee’s tax subcommittee. The public petition would go to a separate petitions subcommittee. Neither panel had been fully constituted when the July 29 meeting was announced, and no review dates were available.
Unless lawmakers approve a repeal or another delay, the 22% tax will take effect on Jan. 1, 2027. No verified crypto-market price movement has been directly linked to the two legislative developments.
