Licensing, Stablecoins and Legal Definitions
South Korea’s landmark digital asset framework is close to final text, according to the country’s top financial regulator. Lee Eog-weon, chairman of the Financial Services Commission, told a parliamentary hearing on Thursday that talks on the Digital Asset Basic Act are nearing completion and that the government will push to introduce the bill to the National Assembly as soon as possible. The proposed law would set the ground rules for the entire market in one of Asia’s most active jurisdictions, replacing the current patchwork of guidance with statutory obligations. Its main pillars are licensing requirements for every crypto exchange, rules governing how stablecoin issuers operate, and clearer legal definitions for digital assets themselves. What the draft does not yet spell out are capital requirements and reserve rules for stablecoin issuers, and because consultations remain in their final stages, those details could still change before the bill reaches lawmakers. For market participants, the practical stakes are high: a settled framework would cut the legal uncertainty around spot trading and holding assets, whether on a platform or in a crypto wallet, and would let firms plan new products without guessing which rules apply. Lee’s remarks place the FSC at the center of the effort, and they carry weight because the commission would be the body implementing whatever the final text prescribes.
A Tax Fight With 53,809 Signatures
The other half of the story is the country’s contested crypto tax, which is scheduled to take effect on January 1, 2027. Authorities have already postponed it three times over fairness and infrastructure concerns, and the pressure to delay again is public and measurable. A petition launched in May seeking outright repeal reached 53,809 signatures, the threshold that forces a legislative review, and a second petition filed in August asking for a two-year deferral crossed the same mark in mid-September. The ruling party has not committed either way. Kim Min-seok, leader of the Democratic Party, said he is reviewing various inputs on the tax plan and called for a thorough final review, comments that suggest no settled position. Lee himself added that crypto taxation should consider various circumstances, acknowledging the timing problem some lawmakers see: the tax could start before the framework sets the basic rules it is meant to tax against. The National Tax Service, meanwhile, plans to finalize its draft tax notice by October 30, with a preliminary review and public notice to follow in November. That schedule leaves little room if lawmakers choose a fourth postponement.