South Korea nears crypto framework as tax timeline remains in question
Framework talks near the end
Consultations on South Korea's Digital Asset Basic Act are in the final stages, according to Financial Services Commission (FSC) Chairman Lee Eog-weon. The FSC has said it will work to introduce the bill as soon as possible.
The act would set a broad framework for digital assets (crypto assets, or digital tokens that can be traded) in South Korea. Reported elements include licensing regimes for exchanges (platforms that let people trade crypto), rules for stablecoin (a type of crypto designed to keep a more stable value) issuance, and clearer legal definitions.
Tax debate gains momentum
At the same time, there is growing pressure over a separate plan to tax crypto gains. Lawmakers have raised concerns that the tax could take effect before the new framework establishes basic rules for the sector.
- Timeline: The tax is currently targeted for Jan. 1, 2027, but it has already been delayed three times.
- Public pressure: A petition to repeal the tax reached the 50,000-signature threshold. Another petition calling for a two-year deferral also reached 50,000 signatures in mid-September.
- Political response: Kim Min-seok, leader of the ruling Democratic Party of Korea, has said he is reviewing inputs on the plan and will conduct a thorough final review, suggesting a more flexible posture than the previous insistence on the 2027 timeline.
- Regulator process: The National Tax Service is still proceeding with plans to finalize its digital asset tax notice draft by Oct. 30, with a preliminary review and public notice to follow in November. Lee Eog-weon said taxation should take various circumstances into full consideration.
Timing remains the main uncertainty
What is confirmed is that the Digital Asset Basic Act consultations are nearing completion and that the tax remains scheduled for Jan. 1, 2027 under current plans. What is still unclear is whether the tax will be delayed again before that date. No exact timeline for introducing the act was reported.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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