The Digital Asset Basic Act in South Korea is approaching its final stages, according to Lee Eog-weon, chairman of the Financial Services Commission. The proposed legislation aims to establish a legal framework for the crypto market, providing clear guidance for exchanges and token issuers. Key components of the bill include licensing requirements for exchanges, rules for stablecoin issuance, and formal legal definitions for digital assets.
While the government intends to introduce the bill to the National Assembly soon, specific details regarding capital requirements and reserve rules for stablecoin issuers remain under discussion. These elements may still undergo adjustments before the final submission. The framework is designed to reduce legal uncertainty for investors and assist companies in developing new financial products.
Simultaneously, the country faces an ongoing debate regarding crypto taxation, which is currently scheduled to take effect on January 1, 2027. Authorities have previously postponed this tax three times due to concerns over infrastructure and fairness. Public opposition remains significant, with petitions for repeal and a two-year deferral each gathering over 53,809 signatures, triggering legislative reviews.
The National Tax Service is set to finalize its draft tax notice by October 30, with a preliminary review and public notice planned for November. Kim Min-seok, leader of the ruling Democratic Party, is currently evaluating various inputs on the tax plan. Lawmakers remain divided, with some expressing concern that the tax could be implemented before the comprehensive regulatory framework is fully established.
