South Korea’s Financial Services Commission plans to work with the ruling Democratic Party on a consolidated Digital Asset Basic Act, according to a briefing to the National Assembly ahead of July 29.

The move comes as 10 separate digital asset and stablecoin bills remain pending in the National Assembly. The FSC wants to merge those proposals into a single government-backed bill that lawmakers can negotiate from, a step that would give the country a clearer rulebook as crypto activity grows more integrated with mainstream finance.

The planned legislation would cover stablecoins, exchanges, disclosure requirements, internal controls, and system resilience for digital asset businesses. It would also define what qualifies as a digital asset business and set standards for how exchanges may operate and what they must disclose to users.

FSC Chairman Lee Eog-weon has said digital asset legislation should be completed during 2026, and that stronger anti-money-laundering rules should be included for stablecoins.

South Korea already has the Virtual Asset User Protection Act, which focuses mainly on custody and unfair trading practices. The proposed Digital Asset Basic Act would go further by regulating issuers, service providers, and the wider market structure, making it a broader framework for a sector that has so far been covered by overlapping proposals rather than a single law.

South Korea is preparing for the next phase of crypto. The Financial Services Commission is working on a government-backed digital asset framework covering areas like stablecoins and exchanges. At the same time, lawmakers are pushing to remove the planned 22% crypto tax set… pic.twitter.com/Oe3rpMIl5A — That Martini Guy ₿ (@MartiniGuyYT) July 29, 2026

One of the main unresolved issues is who can issue stablecoins backed by the Korean won. Some lawmakers want issuers to be controlled by bank-led groups holding at least 50% plus one share. The Bank of Korea supports a leading role for banks, arguing that stablecoins could affect monetary and financial stability.

Other lawmakers and industry groups want non-bank companies to be allowed to issue stablecoins as well, provided they meet licensing and reserve requirements. That debate is central to how much room the new framework would give traditional finance, fintech firms, and crypto-native companies.

Lawmakers have also not settled whether ownership limits should apply to large crypto exchanges. That issue was discussed in March but remains unresolved.

The FSC has not yet said when it will formally submit the bill, and the wording is still being finalized.

At the same time, debate continues over South Korea’s crypto tax. Opposition lawmaker Song Eon-seok introduced a bill in March that would repeal the tax entirely by removing the section of the Income Tax Act that taxes crypto transfers and lending income.

Opposition lawmakers argue it is unfair to tax crypto investors while most stock gains remain tax-free.

Under current law, annual crypto income above 2.5 million won will be subject to a 20% national tax plus a 2% local tax. The levy is scheduled to take effect on January 1, 2027.

The tax has already been delayed three times since it was first planned in 2022. The government and ruling party still support moving ahead with the 2027 start date.

Tax officials say the National Tax Service has established a dedicated digital asset unit and is preparing guidance for when the tax takes effect.

A public petition calling for the tax to be repealed has collected more than 50,000 signatures and is awaiting review by a petitions subcommittee.

Both the repeal bill and the new digital asset framework still require committee review. Neither committee had been fully formed when the July 29 briefing was announced.

Unless lawmakers act, the 22% tax will begin on January 1, 2027.