South Korea is making significant progress on its crypto regulatory framework, with the government nearing the final stages of consultations for the Digital Asset Basic Act. Lee Eog-weon, chairman of the Financial Services Commission, announced during a parliamentary hearing that the legislation is almost complete and will be introduced as soon as possible. The bill aims to create a comprehensive framework for crypto assets, including licensing for exchanges, stablecoin regulations, and clearer legal definitions.
The upcoming crypto taxation program, set to take effect on January 1, 2027, has faced delays and controversy. The tax plan has been postponed three times due to concerns over fairness and infrastructure readiness. Two petitions, one seeking repeal and another requesting a two-year deferral, have each gathered over 50,000 signatures, triggering legislative reviews.
Kim Min-seok, leader of the ruling Democratic Party of Korea, indicated a willingness to review the tax plan thoroughly, suggesting a potential delay. Meanwhile, the National Tax Service is proceeding with its schedule to finalize the digital asset tax notice draft by October 30, with further reviews and public notices planned for November.