TLDR
South Koreas financial regulator is drafting a single Digital Asset Basic Act to unify roughly ten separate crypto and stablecoin bills into one comprehensive framework.
- The planned act would cover stablecoin issuance, exchange rules, disclosures, and internal controls, creating a unified regime for digital asset businesses.
- It comes on top of existing user-protection rules and a scheduled 22% crypto income tax in 2027, so Korean traders face more structure but also stricter oversight.
- Key battles over who can issue won stablecoins and how much ownership large exchanges can hold will shape how bank-centric and concentrated the Korean crypto market becomes.
Deep Dive
1. What The New Act Would Do
South Koreas Financial Services Commission (FSC) has told the National Assembly it plans a government-backed Digital Asset Basic Act that would consolidate ten pending crypto and stablecoin bills into one law, in cooperation with the ruling party.The draft plan is aimed at completion of second-stage digital asset legislation during 2026.
The unified act is expected to define what counts as a digital asset business, set conduct rules, and build a legal framework for stablecoin issuance and circulation, as well as exchange entry requirements, disclosure, internal controls, and system resilience.Coverage of the FSC announcement notes that it would go beyond the existing Virtual Asset User Protection Act, which mainly addresses custody and unfair trading.
Expect clearer licensing and compliance baselines for Korean exchanges and issuers, which usually makes long-term venue and counterparty risk easier to judge.
2. How It Fits Into Koreas Broader Crypto Rules
Alongside the new act, Korea is already rolling out more targeted protections, such as an October law that allows victims of voice phishing scams to claim refunds on virtual asset losses, not just fiat.Guidance for exchanges shows regulators treating crypto more like traditional money in fraud cases.
At the same time, a 22% tax on annual crypto income above 2.5 million won is still scheduled for January 1, 2027, despite an opposition repeal bill and petition.Tax-focused reporting makes clear that, unless repealed, Korean retail and professional traders will be taxed similarly to other financial income.
For crypto users, this points to a future where Korean venues remain active but operate under tighter investor-protection and tax regimes.
3. Unresolved Fights And What To Watch
Several core questions are still open. Regulators and lawmakers are debating whether issuers of won-backed stablecoins must be bank-led consortiums controlling at least half of the equity, and whether ownership caps should apply to major exchanges.Analysis of the 51% rule and exchange limits suggests this could concentrate power in banks and reshape platforms like Upbit and Bithumb.
Watch for three things: the publication of a detailed bill text, committee timetables for review, and final decisions on bank-centric stablecoin issuance and exchange ownership caps. These will determine whether Korea becomes a model of conservative, bank-heavy crypto regulation or allows more diverse issuer and exchange structures.
Conclusion
South Korea is moving from fragmented proposals to a single digital asset law that could become one of the worlds most comprehensive national crypto frameworks. For market participants, the direction is clear: more regulatory clarity, stronger consumer protection, and a defined tax regime, but also potential constraints on stablecoin and exchange business models that will shape how Korean liquidity interacts with global crypto markets.
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