The Financial Services Commission in South Korea is reportedly working on a government-backed digital asset bill that would provide consolidated regulatory rules covering stablecoins and cryptocurrency exchanges. Meanwhile, opposition lawmakers are making moves to repeal the controversial 22% crypto tax scheduled for implementation in 2027.
This news came from Cointelegraph on Wednesday morning as the South Korean legislative process heated up with two competing agendas: enhanced regulation through stablecoin frameworks versus industry relief via tax cuts. The proposed legislation would bring clarity to how digital assets operate under existing financial regulations, potentially streamlining compliance for exchanges and wallet providers.
According to sources familiar with the matter, FSC officials are preparing comprehensive rules that address concerns raised about USDT-backed tokens circulating widely in Asian markets alongside traditional cryptocurrencies. The timing of this legislative push coincides with increasing global pressure on governments to establish clear stablecoin policies following various market disruptions last year.
On the tax front, opposition legislators argue that the pending 22% levy represents excessive taxation compared to international norms, particularly given how South Korea has struggled to maintain broad public support for cryptocurrency adoption. Their proposal would scrap this planned implementation in its entirety while introducing alternative revenue structures they believe better balance innovation with fiscal responsibility.
