South Korea's Digital Asset Basic Act has entered the final stage of government consultations, while lawmakers continue to question the country's planned cryptocurrency tax, which is scheduled to take effect on January 1, 2027, after three previous delays.

Financial Services Commission Chairman Lee Eog-weon confirmed the bill's progress during a parliamentary hearing on October 22. Lee said officials would seek to submit the legislation promptly, but the government has not announced a filing date, nor has it decided whether the tax will proceed as scheduled.

New Rules for Exchanges and Stablecoins

The proposed law would set licensing standards for crypto exchanges, define digital assets, and establish rules for stablecoin issuers. Its advancement comes as businesses explore new services in the sector, including stablecoin payment plans between MoonPay and Dunamu, announced on October 21.

Before any rules can take effect, lawmakers must review the government proposal. Open questions include who may issue stablecoins pegged to the Korean won and what safeguards issuers would be required to provide. Parliamentary committees are expected to examine the bill in November, and the final text could still change during those hearings, depending on the government's submission.

Crypto Tax Faces Renewed Opposition

Under existing law, South Korea plans to tax annual crypto income above 2.5 million won at 22%, including local taxes. The start date has already been postponed three times. Other jurisdictions are weighing changes to their own crypto tax rules as well, including France's proposed tax on crypto-to-stablecoin swaps.

Public pressure has also mounted. Two petitions have been submitted, one calling for the tax to be cancelled and another requesting a two-year delay. Both collected at least 50,000 signatures. Democratic Party leader Kim Min-seok said the government should examine the competing views before reaching a decision.

Tax Agency Works Ahead of Deadline

On October 20, exchange operators asked officials for clearer reporting rules and time to test their systems. They raised concerns about tracking trades executed on overseas platforms and calculating gains across newer types of digital assets.

Meanwhile, plans for a Korean won-backed settlement token remain subject to regulatory approval as officials continue separate talks on taxation and the proposed stablecoin rules.

The National Tax Service aims to complete its draft tax notice by October 30, to be followed by reviews and public consultation in November. The government continues to gather input from exchanges, experts, and lawmakers, and has not indicated whether the January 1, 2027, tax deadline will hold. In the weeks ahead, the draft notice's release, the committee reviews in November, and any decision on the bill's filing date or the tax's start date will clarify whether the current timeline holds.

Source: CoinCentral