South Korea’s Crypto Bill Approaches Final Stage as Tax Dispute Grows

Lee Eog-weon, chairman of the Financial Services Commission, said South Korea’s Digital Asset Basic Act is nearly complete. At the same time, disagreement over the country’s crypto tax is growing.

How exchanges, stablecoin issuers and investors do business in one of Asia’s most active crypto markets will depend on the outcome.

Areas the Digital Asset Basic Act Would Address

The Digital Asset Basic Act is the legal structure South Korea has proposed for digital currencies. It would establish the operating rules for the sector.

In practical terms, the measure would hand exchanges and token issuers more explicit legal direction.

At a parliamentary hearing on Thursday, Lee said the discussions are close to being wrapped up. He also said the government will work to introduce the bill as quickly as possible.

The proposal would deal with several key areas:

• The licensing requirements that crypto exchanges must satisfy.
• Provisions for how stablecoins are issued.
• More precise legal definitions of digital assets.

What the reports failed to spell out were the capital requirements and reserve rules for stablecoin issuers. Given that consultations are in the final stretch, those elements could change before the bill is submitted to the National Assembly.

A clear framework could give investors less legal ambiguity around trading and holding crypto. It might also help firms plan new products.

Could South Korea’s Crypto Tax Be Delayed Again?

The crypto tax is supposed to come into force on January 1, 2027. Officials have already pushed the date back three times, citing fairness and infrastructure concerns.

🚨 SOUTH KOREA TARGETS JAN 2027 CRYPTO TAX!

South Korea will finalize its comprehensive crypto tax framework draft by 30 October.

Public notice and preliminary review have been scheduled for November.

The target is to officially implement this tax framework from January 2027. — Crypto Aman (@cryptoamanclub) October 22, 2026

Pressure from the public, in the meantime, continues to increase. A petition filed in May asking for the tax’s abolition drew 53,809 signatures, enough to prompt a legislative review. A separate August petition requesting a two-year postponement passed the same mark during the middle of September.

Ruling Democratic Party leader Kim Min-seok said he is weighing a number of opinions on the tax plan and asked for a comprehensive final examination. Those remarks imply the party has yet to decide on a definitive stance.

Lee likewise said the taxation of crypto should take different situations into account. The dispute draws attention to a scheduling issue: some legislators are concerned the tax may begin before the framework lays down its basic rules.

For the moment, the National Tax Service aims to complete its draft tax notice by October 30. A preliminary review and public notice are then expected to take place in November. Should lawmakers choose to delay the tax once more, that timetable provides little room.