South Korea Unifies Crypto Framework Amid Tax Repeal Push

The Financial Services Commission of South Korea is working on a consolidated Digital Asset Basic Act that would cover stablecoins, exchanges, disclosures, internal controls, and system resilience. The proposed framework aims to establish rules for stablecoin issuance and circulation, define digital asset businesses, and regulate their conduct.

The FSC plans to coordinate the single government-backed proposal with the ruling Democratic Party, which will serve as the main text for negotiations. Ten digital asset and stablecoin bills are already pending in the National Assembly, but this new bill would unify them into one framework.

One central dispute is whether issuers of won-backed stablecoins must be controlled by bank-led consortiums holding at least 50% plus one share. The Bank of Korea supports giving banks a leading role, arguing that stablecoins could affect monetary and financial stability.