In Brief: South Korea’s Digital Asset Basic Act approaches completion, introducing proposed licensing requirements, stablecoin regulations, and clearer cryptocurrency industry rules. Lawmaker
South Korea is moving closer to finalizing its cryptocurrency legislation as lawmakers question the government’s planned digital asset taxation schedule. According to Financial Services Commission Chairman Lee Eog-weon, consultations on the Digital Asset Basic Act have reached their final stages.
Speaking during a parliamentary hearing Thursday, Lee confirmed that government agencies were working to complete discussions surrounding the proposed legislation. The government intends to introduce the bill as quickly as possible once the remaining consultations conclude.
The legislation would establish comprehensive rules governing cryptocurrency businesses, stablecoin issuance, and digital asset activities across South Korea. It would also introduce licensing requirements for exchanges and provide clearer legal definitions for cryptocurrencies operating within the country.
These developments come as lawmakers raise concerns about implementing cryptocurrency taxes without establishing a complete regulatory framework for the industry.
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South Korea’s cryptocurrency taxation plan faces renewed scrutiny as its January 1, 2027, implementation date approaches. Authorities have already postponed the tax three times because of fairness concerns and insufficient administrative infrastructure.
During Thursday’s hearing, Lee emphasized that policymakers must consider various circumstances when determining how cryptocurrency taxation should proceed. Meanwhile, ruling Democratic Party leader Kim Min-seok acknowledged growing demands for another review of the proposed tax schedule.
Kim explained that differing views surrounding cryptocurrency taxation had prompted calls for a thorough assessment before implementation. The remarks suggest that lawmakers may reconsider the existing timetable amid mounting opposition from cryptocurrency investors.
Public petitions have also increased pressure on policymakers to revise the government’s approach to digital asset taxation. In May, a petition demanding cancellation of the proposed tax collected 50,000 signatures, meeting the threshold for legislative review. Another petition requesting a two-year postponement reached the same threshold in September, following its submission in August.
Meanwhile, South Korea’s Financial Services Commission has proposed additional regulations covering tokenized securities issuance, customer account management, and over-the-counter trading. Under the proposed framework, qualifying issuers directly managing customer accounts must maintain at least 4 billion won, approximately $2.8 million, in capital.
The requirements also mandate dedicated personnel, including one account management professional, one internal control specialist, and two information technology professionals. These measures form part of the proposed issuer account management entity system under the Electronic Registration Act.
Additionally, proposed capital market revisions would establish a separate OTC exchange license for debt securities alongside existing licensing categories.
Retail investors would face an annual net purchase limit of 100 million won, approximately $70,000, on each OTC exchange. The proposals introduce additional financial and operational requirements for companies participating in South Korea’s developing tokenized securities market.
Despite growing political pressure, the National Tax Service is maintaining preparations for the cryptocurrency taxation framework scheduled for January 2027.
The agency expects to finalize its digital asset tax notice draft by October 30, followed by a preliminary review and public notice in November. These preparations follow the existing implementation timetable, even as political discussions surrounding a possible postponement remain unresolved.
South Korea’s government now faces several regulatory decisions involving cryptocurrency legislation, tokenized securities, and taxation. The Digital Asset Basic Act remains under consultation, while the January 2027 tax schedule awaits further political consideration.
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