Nikolas Sargeant
TL;DR
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South Korea's Financial Services Commission (FSC) plans to work with the ruling Democratic Party on a consolidated Digital Asset Basic Act.
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The proposed legislation would establish rules for stablecoins, crypto exchanges, disclosures, internal controls, and digital asset businesses.
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The move seeks to unify 10 separate cryptocurrency bills currently pending in Parliament.
South Korea's Financial Services Commission (FSC) is preparing to draft a comprehensive Digital Asset Basic Act in collaboration with the ruling Democratic Party, a move that could consolidate the country's fragmented cryptocurrency legislation into a single government-backed framework.
According to a report by Edaily, the FSC informed the National Assembly ahead of a policy briefing that it intends to introduce a unified bill covering both stablecoins and the broader digital asset industry.
The proposal is expected to address stablecoin issuance and circulation, licensing requirements for digital asset businesses, cryptocurrency exchange regulations, disclosure obligations, internal governance standards, and system resilience requirements.
Unified Bill Aims to Break Legislative Deadlock
The planned legislation comes after months of delays in South Korea's efforts to finalize the second phase of its cryptocurrency regulatory framework.
Currently, 10 separate bills relating to digital assets and stablecoins are awaiting consideration in Parliament, with lawmakers struggling to reach consensus on several major policy issues.
A consolidated proposal backed by both the government and the ruling party could provide a common foundation for negotiations and accelerate the country's broader crypto regulatory reforms.
However, the FSC has not yet confirmed when the legislation will be formally introduced.
Several significant policy disagreements remain unresolved before the legislation can move forward.
Among the most contentious issues is whether issuers of Korean won-denominated stablecoins should be required to have majority ownership by banks.
Lawmakers are also debating whether ownership limits should be imposed on major cryptocurrency exchanges operating in South Korea.
The outcome of these discussions is expected to shape the country's approach to digital asset regulation and stablecoin oversight.
Opposition Pushes to Repeal Planned Crypto Tax
Separately, South Korea's National Assembly Finance and Economic Planning Committee is scheduled to consider an opposition-backed bill seeking to abolish the country's planned cryptocurrency income tax before it takes effect on January 1, 2027.
The amendment to the Income Tax Act was introduced on March 19 by People Power Party lawmaker Song Eon-seok.
If approved, the proposal would remove provisions requiring taxation on income generated from transferring or lending digital assets.
Once formally introduced, the bill is expected to be referred to the committee's tax subcommittee for detailed review.
Lawmakers are also expected to consider a public petition calling for the repeal of the cryptocurrency tax after it received support from more than 50,000 citizens.
However, progress could be delayed because the relevant parliamentary subcommittees responsible for reviewing both the legislation and the petition have not yet been fully established.
Under the current framework, annual income exceeding 2.5 million won (approximately $1,700) from cryptocurrency transfers or lending would be subject to a 20% national tax, plus an additional 2% local income tax, beginning in 2027.
The ruling Democratic Party and the government continue to support implementing the tax following several postponements. The opposition, however, argues that taxing cryptocurrency investors while many retail stock investors remain exempt creates an unfair imbalance.
The Finance Ministry reaffirmed in May that the planned cryptocurrency tax would proceed despite previous delays.
