South Korea's FSC Lags Behind in Crypto Policy Initiatives

The South Korean Financial Services Commission (FSC) has ranked poorly in its internal review of virtual-asset policy initiatives. According to an evaluation report, the FSC's second-phase virtual-asset law initiative received a fifth-grade rating, while the stablecoin regulatory framework was rated sixth grade. These two tasks were among 10 that were deemed 'somewhat insufficient' or worse out of 31 management tasks assessed.

The review covered tasks carried out by the FSC in 2025 and was conducted by current and former members of the Financial Development Review Committee. The evaluators assigned grades on a seven-level scale, with 'very excellent' being the highest rating and 'poor' the lowest. The delayed legislative timetable has also missed its original target for completing legislation in the first quarter of this year.

Despite these setbacks, preparations for taxing virtual assets are moving ahead as planned. The Ministry of Economy and Finance is sticking to its plan to begin taxing virtual assets in January 2027, with no additional delays or revisions included in next year's tax law amendment bill.