South Korea Pushes Digital Asset Act Amid Tax Controversy

Financial Services Commission Chairman Lee Eog-weon confirmed to the National Assembly that legislative consultations are reaching their final stages. Despite this progress, the government has yet to provide a definitive introduction date for the bill. The proposed legislation aims to govern exchange licensing, stablecoin issuance, and platform supervision, effectively expanding upon existing investor protection measures. However, the lack of a finalized draft has left market participants and regulators in a state of uncertainty.

Opposition and ruling party lawmakers, including Song Eon-seok, are pushing to suspend the 22% tax on annual crypto gains exceeding 2.5 million won. Critics argue that imposing tax obligations is premature until the legal classification of digital assets is settled. While the National Tax Service continues to develop guidance for staking rewards, airdrops, and decentralized finance transactions, the legislative timeline remains disconnected from administrative preparations. With the National Tax Service scheduled to finalize tax notices by November, the decision to maintain or postpone the January 1, 2027, tax deadline rests entirely on further parliamentary action.