Seoul Says Stablecoin Script Soon; Opposition Sings "Taxman, Spare That Crypto

South Korea's Financial Services Commission (FSC) is preparing a consolidated Digital Asset Basic Act together with the ruling Democratic Party, according to an Edaily report published Wednesday. The FSC told the National Assembly ahead of a policy briefing that it intends to introduce a single government-backed bill covering stablecoin issuance and circulation, digital asset business rules, exchange entry requirements, disclosures, internal controls and system-resilience standards. Ten separate digital asset and stablecoin bills remain pending in Parliament, and disagreements have blocked agreement on key elements of South Korea's second-stage crypto legislation. The FSC has not finalized when or how the consolidated bill will be introduced. Unresolved disputes include whether won-denominated stablecoin issuers must be majority bank-owned and whether ownership caps should apply to major crypto exchanges.

Separately, the National Assembly's Finance and Economic Planning Committee was scheduled to table an opposition bill on Wednesday that would abolish South Korea's crypto income tax before its Jan. 1, 2027 implementation. The Income Tax Act amendment was introduced on March 19 by People Power Party lawmaker Song Eon-seok and seeks to delete the provision taxing income from transferring or lending digital assets. After tabling, the bill is expected to be referred to the committee's tax subcommittee for detailed consideration, Edaily reported. A separate repeal petition backed by more than 50,000 people is also expected to go before a petitions subcommittee, though neither subcommittee has been fully constituted and no review dates have been set.

Under current law, from Jan. 1, 2027 income from transferring or lending crypto exceeding 2.5 million won (about $1,700) annually would face a 20% tax plus a 2% local income tax. The government and the ruling Democratic Party support implementing the tax, while the opposition argues that taxing crypto while most ordinary stock investors remain exempt is unfair. On May 7 the Finance Ministry said the tax would proceed after repeated delays, leaving the two-track policy fight in Parliament to run its course.