South Korea Advances Crypto Bill Amid Tax Disputes

South Korea's government is moving forward with its 'crypto' bill, which aims to regulate stablecoins and digital asset exchanges. The Financial Services Commission (FSC) plans to draft a consolidated Digital Asset Basic Act that covers stablecoin issuance and circulation, as well as exchange entry requirements, disclosures, internal controls, and system-resilience standards.

The proposal is part of the government's efforts to advance key elements of its second-stage digital currency legislation. However, disagreements have prevented South Korea from implementing these regulations so far.

Meanwhile, opposition lawmakers are pushing to repeal the 22% digital currency tax that will take effect next year. The tax applies to gains exceeding KRW 2.5 million ($1,700) annually and is expected to generate around $300 billion in revenue for the government by 2029.