South Korea plans stablecoin rules as opposition pushes crypto tax repeal
South Korea’s Financial Services Commission plans to work with the ruling Democratic Party on a consolidated Digital Asset Basic Act that would create a single framework for stablecoins and the broader crypto market. The proposed bill would reportedly cover stablecoin issuance and circulation, exchange entry rules, disclosure standards, internal controls, and system-resilience requirements. A joint government-party draft could help resolve months of deadlock, as 10 separate crypto and stablecoin bills are already pending in Parliament. Key unresolved issues include whether won-backed stablecoin issuers must be mostly bank-owned and whether major exchanges should face ownership limits. Separately, an opposition bill seeking to abolish South Korea’s planned crypto income tax is set for committee review. The tax is scheduled to begin on Jan. 1, 2027, at 20% plus a 2% local surtax on annual crypto gains above 2.5 million won. The government and ruling party support the tax, while the opposition argues it is unfair.
