South Korea Unveils Consolidated Crypto Bill Amid Tax Repeal Push

The South Korean government is preparing to introduce a consolidated bill for digital assets and stablecoins after months of delays. The Financial Services Commission (FSC) told the National Assembly that it intends to draft a Digital Asset Basic Act, which would cover key aspects of the cryptocurrency market.

The proposed bill would include rules for stablecoin issuance and circulation, as well as standards for internal controls, system resilience, and disclosures. However, 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 aimed at repealing South Korea's cryptocurrency income tax is set to be reviewed by the National Assembly's Finance and Economic Planning Committee. The proposed amendment would delete the provision taxing income from transferring or lending digital assets, which is set to come into effect on January 1, 2027.

The government and ruling Democratic Party support implementing the tax, while the opposition argues that it is unfair to tax cryptocurrency investors when most ordinary stock investors remain exempt.