The Cryptocurrency Bill in South Korea is Close to Completion

The cryptocurrency bill in South Korea is nearing its final stage. Lee Ik-won, chairman of the Financial Services Commission (FSC), stated during a parliamentary hearing on Thursday that discussions on the Digital Asset Basic Act are close to completion, and the government will try to introduce the bill as soon as possible, according to local media reports.

The bill aims to create a comprehensive legal framework for digital assets: licensing of cryptocurrency exchanges, rules for stablecoin issuance, and clearer legal definitions.

Amid progress on the bill, debates on taxation are intensifying. The tax is set to take effect on January 1, 2027, but has been postponed three times due to disputes over fairness and underdeveloped infrastructure. In May, a petition demanding the cancellation of the planned tax gathered 50,000 signatures—the threshold required to initiate a legislative review. Another petition in August, calling for a two-year delay, also gathered 50,000 signatures by mid-September.

During the hearing, Lee Ik-won stated that cryptocurrency taxation should "fully consider various circumstances." Kim Min-sok, leader of the ruling Democratic Party, said on Thursday that he is considering various opinions on the tax plan and noted that he raised the issue of the need for a thorough final review the day before. This indicates a more flexible stance by the authorities, who previously insisted on adhering to the 2027 deadline.

Meanwhile, the National Tax Service continues its preparations: a draft notice on digital asset tax is expected to be completed by October 30, followed by a preliminary review and public notice in November according to the existing schedule. According to a second source, the proposed tax includes a 22% rate on certain crypto income. South Korea is also considering combining several pending bills into a single legislative package.