South Korea's Crypto Bill Nears Completion as 2027 Tax Debate Grows

South Korea's government says it is close to finishing the Digital Asset Basic Act, the law meant to set the ground rules for the country's crypto market. Financial Services Commission (FSC) chairman Lee Eog-weon told a parliamentary hearing on Thursday, 22 October, that talks on the bill are in their final stage. He said the government will push to introduce it as soon as possible.

For anyone holding coins on a Korean exchange, the timing matters because of a second deadline. Korea's crypto income tax is due to take effect on 1 January 2027, after three postponements. As things stand, holders could be taxed on their crypto before the law that defines what they hold has even reached parliament.

No Bill Text Yet, So Its Contents Are Unconfirmed

No text of the bill and no FSC release on it have been published. Reporting has described the act as covering licensing for crypto exchanges, rules for issuing stablecoins and legal definitions of digital assets. That description has not yet been confirmed against the bill itself.

No capital or reserve requirements for stablecoin issuers have been reported. Any such details could still change before the bill reaches the National Assembly.

Exchange licensing would matter most for where Koreans can trade. Authorities have already moved to block 27 crypto sites, including KuCoin and MEXC. If the act does include licensing, it would set the formal terms for which platforms can serve Korean users.

The 2027 Tax Start Date Faces Fresh Doubts

At the same hearing, Lee said the crypto tax should "take various circumstances into full consideration". On the same day, Kim Min-seok, leader of the ruling Democratic Party, called for a "thorough final review" of the tax plan.

Neither remark changes the legal start date. But both come from people with a hand in whether it holds. The tax was introduced through a 2020 change to the income tax law and has been pushed back three times since.

Tax Notice Due Friday, Bill Date Still Open

The next fixed date is close. The National Tax Service plans to finalise its draft tax notice by 30 October, this Friday.

The bill has no such date. Lee gave no timetable beyond "as soon as possible", and without a published text, holders still cannot see what the licensing and stablecoin rules will require. Unless the tax is delayed a fourth time, it starts in just over two months either way.