South Korea to Draft Single Digital Asset Law as 22% Crypto Tax Looms

Overview

• The Financial Services Commission told lawmakers it will work with the ruling Democratic Party to prepare a consolidated Digital Asset Basic Act that folds ten pending bills into one government-backed proposal.
• Key technical disputes still open include whether won-backed stablecoins must be issued by bank-led groups holding a majority stake and whether ownership caps should apply to major crypto exchanges.
• The planned 22% tax on annual crypto income above a 2.5 million won exemption remains scheduled to take effect on January 1, 2027, even though the opposition has filed a repeal bill and a public petition has more than 50,000 signatures.
• Tax authorities have set up a dedicated digital-asset unit and are drafting guidance to implement the levy while parliamentary committees needed to review both the tax repeal and the new consolidated bill had not been fully formed as of July 29.
• Policy advisers and industry voices have urged a staged approach that could allow interim stablecoin licensing and operational rules before the full law is passed, a path that could let firms prepare even if final legislation is delayed.