TLDR
- South Korea’s Digital Asset Basic Act has reached the final stage of government consultations.
- The proposed law would introduce crypto exchange licensing and rules for stablecoin issuers.
- Lawmakers are questioning the January 1, 2027, crypto tax deadline after three previous delays.
- The planned 22% tax would apply to annual crypto income exceeding 2.5 million won.
- Tax authorities continue preparing implementation guidance, although officials have not decided whether to delay taxation again.
South Korea is nearing the end of government talks on its Digital Asset Basic Act, while lawmakers question a planned cryptocurrency tax. Financial Services Commission Chairman Lee Eog-weon confirmed the bill’s progress during a parliamentary hearing on October 22.
Lee said officials would seek to submit the legislation promptly. However, the government has not announced a filing date or decided whether to proceed with the tax scheduled for January 1, 2027.
South Korea Prepares New Crypto Rules
The proposed law would set licensing standards for crypto exchanges, define digital assets and establish rules for stablecoin issuers. Its progress comes as businesses explore new services, including stablecoin payment plans between MoonPay and Dunamu, announced on October 21.
Lawmakers still need to review the government proposal before any rules can take effect. Discussions include who may issue stablecoins tied to the Korean won and what safeguards those issuers must provide. Parliamentary committees expect to examine the bill in November. The final text could change during those hearings, depending on the government’s submission.
Crypto Tax Plans Face Renewed Opposition
Under existing law, South Korea plans to tax annual crypto income above 2.5 million won at 22%, including local taxes. The start date has already shifted three times. Other countries are debating changes too, including France’s proposed tax on crypto-to-stablecoin swaps.
Two public petitions have added pressure. One sought cancellation of the tax; another requested a two-year delay. Both collected at least 50,000 signatures. Democratic Party leader Kim Min-seok said the government should examine the competing views before reaching a decision.
Tax Agency Continues Work Ahead of Deadline
Exchange operators asked officials on October 20 for clearer reporting rules and time to test their systems. They raised concerns about tracking trades on overseas platforms and calculating gains across newer types of digital assets. Meanwhile, plans for a Korean won-backed settlement token remain subject to regulatory approval while officials continue separate talks on taxation and proposed stablecoin rules.
The National Tax Service aims to complete its draft tax notice by October 30, followed by reviews and public consultation in November. South Korea’s government continues collecting views from exchanges, experts and lawmakers.
