South Korea Tackles Stablecoin Rules Amid Crypto Tax Repeal Push

South Korea's Financial Services Commission (FSC) plans to draft a consolidated Digital Asset Basic Act, which will cover stablecoin issuance and circulation, digital asset business rules, exchange entry requirements, disclosures, internal controls, and system-resilience standards. The proposal aims to provide a central framework for negotiations among lawmakers. Currently, there are 10 separate digital asset and stablecoin bills pending in Parliament.

The FSC has not finalized when or how the consolidated bill will be introduced. 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 on Wednesday aimed to abolish South Korea's crypto income tax before its January 1, 2027 implementation. The Income Tax Act amendment introduced by People Power Party lawmaker Song Eon-seok aims to delete the provision taxing income from transferring or lending digital assets.