South Korea is merging ten crypto-related bills into one full Digital Asset Basic Act to streamline regulation. The Financial Services Commission aims to have the legislation ready by 2026, setting clearer rules for stablecoins, exchanges, and digital asset businesses.
The bill will define which entities qualify as digital asset operators and establish disclosure and internal control requirements. Despite opposition, the scheduled 22% tax on crypto income will kick in on January 1, 2027, with a 2.5 million won exemption threshold before taxation applies.
Key debates remain unresolved, particularly on who can issue Korean won-backed stablecoins. The Bank of Korea favors stablecoin issuers led by banks controlling more than 50% ownership, raising questions about the market's future structure and monetary impact.
