South Korea's FSC Moves Toward a Single Digital Asset Law as Opposition Seeks to Scrap Crypto Tax

South Korea's Financial Services Commission (FSC) is preparing to co-author a unified government bill, the Digital Assets Basic Act, with the ruling Democratic Party, according to Edaily. The draft is expected to set rules for stablecoin issuance and circulation, regulation of digital-asset businesses, exchange entry requirements, disclosure duties, internal controls and standards for system resilience. The National Assembly currently has ten related bills under review, but lawmakers have yet to align on key questions, including whether stablecoin issuers should be bank-controlled and whether ownership caps should apply to major exchanges. The FSC has not announced when it plans to submit the bill. In parallel, an opposition-led effort to eliminate the cryptocurrency capital gains tax is advancing. A bill amendment introduced in March by People Power Party lawmaker Song Yeonseok was sent on Wednesday to the National Assembly's Committee on Finance and Economy for review. A separate petition calling for repeal, backed by more than 50,000 signatures, is also expected to be filed with the petitions subcommittee. Under the current plan, crypto gains above 2.5 million KRW per year would be taxed starting January 1, 2027, at a 20% income tax rate plus a 2% local tax. The government and ruling party favor keeping the implementation date, while the opposition argues it is unfair to tax cryptocurrencies when most retail stock investors remain exempt.