South Korea Unveils Digital Asset Framework as Crypto Tax Looms

South Korea's Financial Services Commission (FSC) is working on a government-backed digital asset framework that aims to regulate stablecoins, exchanges, and disclosures. The plan involves coordinating with the ruling Democratic Party to create a consolidated bill.

The proposed framework will cover various aspects of digital assets, including stablecoin issuance and circulation, exchange entry standards, disclosure requirements, and internal controls intended to protect users and maintain reliable trading systems.

Separately, lawmakers are pushing to remove the planned 22% crypto tax set to take effect on January 1, 2027. The opposition argues that taxing ordinary crypto investors while most retail stock gains remain exempt is unfair.

The FSC must complete consultations with the ruling party and other authorities before submitting its consolidated bill. If approved, it will be reviewed alongside existing proposals, including those related to stablecoin ownership and exchange-shareholding rules.