Summary
South Korea's FSC is moving to consolidate 10 pending digital asset and stablecoin bills into a single Digital Asset Basic Act, covering stablecoin issuance/circulation, exchange entry requirements, disclosures, internal controls, and IT security. Key disputes remain over whether won-denominated stablecoin issuers should be majority bank-owned (51% rule) and whether 15-20% equity ownership limits should apply to major exchanges. Separately, the opposition is pushing to abolish the 22% crypto income tax scheduled for January 2027, while the government insists it will proceed.
Key Points
- FSC plans consolidated Digital Asset Basic Act with ruling Democratic Party
- 10 separate bills pending: stablecoin, exchange regulation, investor protection
- Stablecoin rules: issuance/circulation framework, bank-led consortium model debated
- Exchange rules: entry requirements, disclosures, internal controls, IT security
- Key disputes: 51% bank ownership of won stablecoin issuers; 15-20% equity limits on exchanges
- Tax: 20% + 2% local income tax on crypto gains >2.5M won (~$1,700) annually
- Opposition repeal bill has 50,000+ petition signatures
- Government/ruling party supports tax implementation after repeated delays
- FSC also reviewing guidelines for corporate crypto market participation
- 2027 pilot: tokenized government bonds linked to BOK CBDC platform
- FSC aims to complete legislation by end of 2026
- Political Affairs Committee agreed to hold subcommittee meetings twice monthly to fast-track