South Korea's Digital Asset Basic Act Nears Completion as Tax Debate Intensifies
The Financial Services Commission says the country's crypto framework is close to finished, while disagreement over taxation remains unresolved.
South Korea's Digital Asset Basic Act is approaching completion, according to Lee Eog-weon, chairman of the Financial Services Commission (FSC). The chairman's remarks place the long-discussed framework close to the end of its legislative path.
Alongside the bill's progress, debate over how crypto assets should be taxed is sharpening. The tax question remains a separate point of contention even as the regulatory structure moves toward finalisation.
Why the framework matters
South Korea is among Asia's most active crypto markets, and the rules set out in the act are expected to define operating conditions for several groups at once:
- Exchanges, which would face clearer conduct and oversight requirements
- Stablecoin issuers, whose treatment under the framework is a central question
- Investors, who would be affected by both the regulatory rules and any tax regime
The final shape of the legislation and the accompanying tax policy will determine how these participants operate in the jurisdiction. No timeline for completion was specified in the source remarks, and the tax dispute remains open.