South Korea Nears Final Stage on Digital Asset Basic Act as Crypto Tax Pressure Grows

South Korea’s long awaited crypto framework is close to completion, according to the country’s top financial regulator. Lee Eog weon, chairman of the Financial Services Commission, told a parliamentary hearing on Thursday that government discussions on the Digital Asset Basic Act are nearing the end and that officials will move to introduce it as soon as possible. The bill aims to set up a full structure for crypto assets, including licensing rules for exchanges, requirements for stablecoin issuance and clearer legal definitions.

South Korea Crypto Tax Plan Faces Delay Calls

Lawmakers have questioned why the country’s crypto tax could start before the framework sets basic rules for the young sector. The tax is scheduled for Jan. 1, 2027, and has already been postponed three times over fairness concerns and weak infrastructure. Lee said taxation should take various circumstances fully into account. In May, a petition to repeal the tax reached the 50,000 signatures needed to trigger a legislative review, and an August petition seeking a two year deferral hit the same mark in mid-September.

Ruling Party Leader Signals Flexibility

Kim Min seok, leader of the ruling Democratic Party of Korea, said Thursday he is reviewing various inputs on the tax plan as calls for delay grow. He said he raised the need for a thorough final review the day before. His remarks suggest a more flexible stance from authorities who had earlier insisted on keeping the 2027 timeline.