South Korea’s Digital Asset Basic Act is close to completion, according to Lee Eog-weon, chairman of the Financial Services Commission. However, a debate over the country’s crypto tax is intensifying.
The outcome will shape how exchanges, stablecoin issuers, and investors operate in one of Asia’s busiest crypto markets.
What the Digital Asset Basic Act Would Cover
The Digital Asset Basic Act is South Korea’s proposed legal framework for crypto assets. It would set the ground rules for how the market operates.
In practice, it would give exchanges and token issuers clearer legal guidance.
Lee told a parliamentary hearing on Thursday that talks are nearing completion. He added that the government will push to introduce the bill as soon as possible.
The proposal would address several key areas:
- Licensing requirements for crypto exchanges.
- Rules for issuing stablecoins.
- Clearer legal definitions for digital assets.
However, the reports did not detail capital requirements or reserve rules for stablecoin issuers. Because consultations remain in their final stages, those details could still change before the bill reaches the National Assembly.
For investors, a clear framework could reduce legal uncertainty around trading and holding digital assets. It could also make it easier for firms to plan new products.
Will South Korea Delay Its Crypto Tax Again?
The crypto tax should take effect on January 1, 2027. Authorities have already postponed it three times over fairness and infrastructure concerns.
Meanwhile, public pressure keeps building. A May petition seeking repeal reached 53,809 signatures, which triggered a legislative review. In addition, an August petition for a two-year deferral crossed the same threshold in mid-September.
Kim Min-seok, leader of the ruling Democratic Party, said he is reviewing various inputs on the tax plan. He also called for a thorough final review. His comments suggest the party has not settled on a final position.
Lee also said crypto taxation should consider various circumstances. The debate highlights a timing problem, since some lawmakers worry the tax could start before the framework sets basic rules.
For now, the National Tax Service plans to finalize its draft tax notice by October 30. Then, a preliminary review and public notice should follow in November. That schedule leaves little time if lawmakers decide to postpone the tax again.
The post South Korea’s Crypto Bill Nears the Finish Line as the Tax Debate Heats Up appeared first on BeInCrypto.
