South Korea plans stablecoin rules amid tax repeal push
South Korea plans stablecoin rules through a consolidated Digital Asset Basic Act that the Financial Services Commission intends to draft with the ruling Democratic Party. The government-backed bill would cover stablecoin issuance, exchanges and market safeguards, while opposition lawmakers push to scrap a 22% crypto tax due in 2027.
Key Takeaways
- South Korea’s FSC plans a consolidated Digital Asset Basic Act covering stablecoin issuance, exchanges and market safeguards.
- Ten digital asset and stablecoin bills are already pending in Parliament amid unresolved second-stage crypto rules.
- Disputes remain over bank ownership of won stablecoin issuers and ownership limits on major exchanges.
- An opposition bill to abolish the crypto income tax before the Jan. 1, 2027 start is headed for committee review.
- Crypto gains above about 2.5 million won a year face a 20% tax plus a 2% local levy under current law.
What is South Korea planning for stablecoins?
According to an Edaily report cited by Cointelegraph, the Financial Services Commission told the National Assembly ahead of a policy briefing that it intends to introduce a consolidated bill.
The proposal would reportedly cover stablecoin issuance and circulation, digital asset business rules, exchange entry requirements, disclosures, internal controls and system-resilience standards. Officials have framed the move as a government-backed path after months of delays on broader market rules.
For readers tracking Fintech & Crypto Alerts, the shift matters because a single ruling-party-backed draft could replace a fragmented stack of rival proposals.
Why does a consolidated crypto bill matter now?
South Korea already has 10 separate digital asset and stablecoin bills pending in Parliament. Disagreements have blocked key parts of the country’s second-stage crypto legislation, leaving issuers and exchanges without a clear national playbook.
A consolidated government-ruling party proposal could give lawmakers a central framework for negotiations. The FSC has not finalized when or how the bill will be introduced.
Two flashpoints remain unresolved: whether won-denominated stablecoin issuers should be majority bank-owned, and whether ownership limits should apply to major crypto exchanges. Those choices will shape who can issue digital won-linked tokens and how concentrated exchange control can become.
Will South Korea scrap the crypto tax before 2027?
Separately, the National Assembly’s Finance and Economic Planning Committee was scheduled to table an opposition bill that would abolish the crypto income tax before its Jan. 1, 2027 implementation.
People Power Party lawmaker Song Eon-seok introduced the Income Tax Act amendment on March 19. It aims to delete the provision taxing income from transferring or lending digital assets. Once tabled, it is expected to go to the committee’s tax subcommittee for detailed review.
A repeal petition backed by more than 50,000 people is also expected before a petitions subcommittee. Neither subcommittee has been fully constituted, and no review dates have been set.
Under current law, income from transferring or lending crypto above 2.5 million won (about $1,700) a year faces a 20% tax plus a 2% local income tax from 2027. The government and ruling Democratic Party support implementing the levy, while the opposition argues it is unfair because most ordinary stock investors remain exempt. On May 7, the Finance Ministry said the tax would proceed after repeated delays.