South Korea Moves Toward Unified Crypto Bill as Tax Repeal Debate Continues

South Korea’s Financial Services Commission is reportedly preparing to draft a consolidated Digital Asset Basic Act alongside the ruling Democratic Party, aiming to give lawmakers a unified, government backed proposal covering stablecoins and broader crypto market rules after months of stalled progress.

Consolidated Bill Aims to Cover Multiple Areas

According to a local report published Wednesday, the FSC informed the National Assembly it plans to introduce a single bill addressing stablecoin issuance and circulation, digital asset business regulations, exchange entry standards, disclosure requirements, internal controls and system resilience. This comes as ten separate crypto-related bills currently sit pending in Parliament, with disagreements stalling the country’s second phase of digital asset legislation. Unresolved issues include whether won-based stablecoin issuers must be majority bank-owned and whether ownership caps should apply to major exchanges.

Opposition Seeks to Scrap Crypto Tax

Separately, a parliamentary committee was set to review an opposition backed bill Wednesday aiming to eliminate South Korea’s crypto income tax before it takes effect on January 1, 2027. The proposal, introduced in March by a People Power Party lawmaker, seeks to remove the tax provision entirely. A related petition supported by over 50,000 people is also awaiting review, though no formal review dates have been confirmed yet.

Tax Debate Remains Unresolved

Starting in 2027, crypto income above roughly $1,700 annually would face a combined 22% tax. While the ruling party supports moving forward with the tax, opposition lawmakers argue it unfairly targets crypto investors compared to stock traders, who remain largely exempt.