South Korea Moves Forward with Stablecoin Regulations Amid Crypto Tax Repeal Push

The South Korean government is moving forward with plans to regulate stablecoins and cryptocurrencies. According to an Edaily report, the Financial Services Commission (FSC) will draft a consolidated Digital Asset Basic Act with the ruling Democratic Party.

The proposal aims to cover stablecoin issuance and circulation, digital asset business rules, exchange entry requirements, disclosures, internal controls, and system-resilience standards. This comes after months of delays and amid ongoing disputes over key elements of South Korea's second-stage crypto legislation.

Opposition lawmakers have proposed a bill to repeal the country's planned 20% tax on cryptocurrency income exceeding $1,700 annually from January 2027. The government and ruling Democratic Party support implementing the tax, while opponents argue it is unfair to tax cryptocurrencies while most ordinary stock investors remain exempt.