Korea Drafts Stablecoin Bill Amid Opposition Crypto Tax Repeal Efforts

South Korea's Financial Services Commission (FSC) is planning to draft a consolidated Digital Asset Basic Act, which would provide a central framework for negotiations on stablecoin issuance and circulation, digital asset business rules, exchange entry requirements, disclosures, internal controls, and system-resilience standards.

The FSC intends to introduce the consolidated bill after months of delays, but key disputes remain over whether won-denominated stablecoin issuers should be majority bank-owned and whether ownership limits should apply to major crypto exchanges.

Separately, an opposition bill to repeal South Korea's crypto income tax is heading for review. The Income Tax Act amendment aims to delete the provision taxing income from transferring or lending digital assets, which is set to take effect on January 1, 2027.