South Korea's Financial Services Commission is working with the ruling Democratic Party to draft a consolidated Digital Asset Basic Act, aiming to merge 10 pending digital asset bills into a single legislative proposal. This effort comes ahead of a policy briefing scheduled for July 29 and reflects the government's push to establish clearer rules around digital assets by 2026.
The new framework would cover stablecoins, exchanges, disclosure requirements, internal controls, and system resilience. The bill also looks to define the roles and conduct of digital asset businesses, set standards for exchanges, and bolster protections for users to create a more reliable trading environment.
One of the most contentious issues is the ownership structure for issuers of won-backed stablecoins. The Financial Services Commission has yet to finalize whether these issuers must be controlled by bank-led groups holding a majority stake. The Bank of Korea supports giving banks a dominant role, citing concerns over potential impacts on monetary and financial stability.
The proposed legislation also confirms that a 22% tax on crypto income will go into effect in January 2027, despite opposition efforts to repeal or delay it. An annual exemption of 2.5 million won will apply before the tax kicks in for qualifying digital asset income. The National Assembly’s Finance and Economic Planning Committee has planned an opposition amendment to remove this tax, but current laws remain unchanged.
This initiative builds on South Korea’s existing Virtual Asset User Protection Act, which primarily addresses custody and user safeguards. The new law would expand oversight to issuers, service providers, and the broader market framework.
Singapore’s tightening of crypto bank regulations reflects a regional trend towards more full digital asset governance.
The market responded subtly, with no sharp moves observed immediately following the announcement.
This material is for informational purposes only and does not constitute financial advice.
