South Korea’s National Assembly is preparing to take up a cluster of crypto-related issues in its November session, with lawmakers set to review the Digital Asset Basic Act, debate how won-denominated stablecoins should be issued, and revisit the start date for virtual-asset taxation.
The discussions split across two connected tracks: building a formal market-regulation framework and deciding how tax rules should be applied. Officials have stressed that both need to move together, arguing that tax enforcement will be difficult without the infrastructure and trust that come from clearer market rules.
Digital asset bill heads to committee review
The Political Affairs Committee is expected to begin reviewing the Digital Asset Basic Act next month, with the aim of passing the bill within this year. The measure is part of a broader push to bring the virtual-asset market into a more formal institutional framework.
At the same time, a tax subcommittee plans to examine the timetable for crypto taxation, which under the current schedule would begin in January. The parallel reviews underline how lawmakers are treating regulation and taxation as linked parts of the same policy effort rather than separate debates.
Won stablecoin structure remains unsettled
One of the most sensitive questions is how won-backed stablecoins should be issued. The debate centers on finding an arrangement that can protect financial stability while still allowing room for private-sector participation.
Among the options under discussion is a consortium model in which banks would hold a majority stake. Fintech companies, however, are pressing for a structure that would also permit non-bank participation. Lawmakers are expected to examine who should qualify to issue such tokens and how governance should be designed around technology capabilities and distribution networks.
Tax plan faces practical and political questions
Under the current plan, annual virtual-asset income above 2.5 million won, or about $1,800, would be taxed at 22% including local taxes starting next year. But the proposal continues to face both technical and political challenges before implementation.
A central problem is how authorities would accurately track transactions across both domestic and offshore venues. Other unresolved issues include limits on securing offshore trading records and the absence of a loss carryforward deduction, factors that complicate the design and enforcement of a workable tax regime.
Delay to 2029 is under discussion
Lawmakers from both major parties are considering whether to postpone the tax start date to 2029. The idea is being discussed in bipartisan talks and has been framed as a way to align South Korea’s approach with international developments.
The government has not yet finalized its position. For now, the committee is expected to continue debating both the eligibility and governance rules for won stablecoin issuers and the timing of virtual-asset taxation, with the broader legislative schedule still dependent on formal proposals and inter-party negotiations.
Source: en.bloomingbit.io