South Korea's Financial Services Commission says government consultations on the Digital Asset Basic Act are in their final stages. Meanwhile, the planned crypto tax, targeted for Jan. 1, 2027, faces mounting pressure to be delayed.
South Korea's crypto regulatory framework is close to leaving government consultations. Financial Services Commission Chairman Lee Eog-weon said on Thursday that discussions on the Digital Asset Basic Act were nearing completion and that the government will work to introduce it as soon as possible. He spoke at a parliamentary hearing, according to local outlet Bloomingbit.
What the Digital Asset Basic Act covers
The bill seeks to set a comprehensive framework for crypto assets, including licensing regimes for exchanges, rules for stablecoin issuance and clearer legal definitions. However, local lawmakers have raised concerns that crypto taxation could take effect before the framework sets fundamental rules for the comparatively nascent sector.
Pressure builds to delay the crypto tax
The tax program is targeted for Jan. 1, 2027 and has already been delayed three times over fairness concerns and underdeveloped infrastructure. In May, a petition to repeal it reached the 50,000-signature threshold that triggers a legislative review. A separate August petition seeking a two-year deferral hit 50,000 signatures in mid-September.
Lee said the taxation should "take various circumstances into full consideration", according to Yonhap. Kim Min-seok, leader of the ruling Democratic Party of Korea, said he is reviewing various inputs on the plan and had called for a thorough final review. The Block reports that his comment suggests a more flexible posture from authorities, who had previously insisted on the 2027 timeline.
National Tax Service keeps its schedule
For now, the National Tax Service is proceeding with its plans to finalize its digital asset tax notice draft by October 30. A preliminary review and public notice would follow in November, in line with the existing schedule, according to local outlet Digital Asset.
Source: The Block
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