South Korea's FSC Says Digital Asset Basic Act Nears Completion Ahead of 2027 Crypto Tax
Key Takeaways
- •FSC Chairman Lee Eog-weon stated at a Thursday parliamentary hearing that talks on the Digital Asset Basic Act are nearing completion.
- •The bill would unify oversight of digital asset issuance, market conduct, and crypto businesses under a single framework law in South Korea.
- •Regulators have focused closely on how the legislation will govern won-backed stablecoins and define the obligations of issuers and service providers.
- •The Basic Act extends the Virtual Asset User Protection Act of July 2024, which addressed unfair trading practices and assigned custody duties to virtual asset service providers.
- •The legislation forms part of preparations for South Korea's digital asset tax, a 20 percent levy on crypto gains above 2.5 million won, set to take effect in 2027.
South Korea's landmark digital asset framework is close to its final text, according to the country's top financial regulator.
Lee Eog-weon, chairman of the Financial Services Commission (FSC), told a parliamentary hearing on Thursday that talks on the Digital Asset Basic Act are nearing completion. The legislation is moving forward ahead of South Korea's planned introduction of digital asset taxation in 2027.
A Framework Law in the Making
The Digital Asset Basic Act is designed to serve as South Korea's comprehensive framework law for the crypto industry, consolidating oversight of issuance, market conduct, and digital asset businesses under a single statute. Lawmakers and regulators have focused particular attention on how to regulate won-backed stablecoins and on defining the obligations of issuers and service providers.
The bill builds on the Virtual Asset User Protection Act, which took effect in July 2024 and established rules against unfair trading practices while assigning custody responsibilities to virtual asset service providers. Regulators have described that law as a first step, arguing that a broader framework is needed to cover areas it left unaddressed — a gap the Basic Act is intended to fill by setting the operating rules for the industry itself, with the won-backed stablecoin provisions among the details to watch as the text is finalized.
The Road to 2027
South Korea's digital asset tax, a 20 percent levy on crypto gains above 2.5 million won, has been postponed repeatedly since it was first planned. After a series of deferrals, the government confirmed in late 2024 that the tax would take effect in 2027, and officials have since positioned the passage of comprehensive legislation as part of the groundwork for the new regime. With the FSC signaling the text is nearly settled, the bill's remaining legislative path — which runs through the National Assembly before any of its provisions can take effect — is the next step to watch ahead of the 2027 start date.
Lee's comments at the hearing mark the latest indication from FSC that the legislation is entering its final stages.
This content was first published on COINOTAG.
