South Korea's Digital Asset Basic Act Enters Final Consultation Stage

South Korea's flagship crypto legislation, the Digital Asset Basic Act, is in the final stages of government consultation, according to Financial Services Commission Chairman Lee Eog-weon. The regulator told a parliamentary hearing on Thursday that the government intends to introduce the bill as soon as possible, local outlet Bloomingbit reported.

The stakes are considerable. The bill would create the country's first comprehensive framework for digital assets, covering licensing regimes for exchanges, rules for stablecoin issuance, and clearer legal definitions for the sector. For exchanges and issuers operating in one of Asia's largest retail crypto markets, the legislation would replace ambiguity with a formal rulebook — assuming the final text preserves the scope officials have described. Notably, Lee did not commit to a submission date, and "as soon as possible" remains undefined.

What did Lee Eog-weon actually say?

Speaking at the parliamentary hearing, Lee said consultations on the act were nearing completion and that the government will work to introduce it promptly, according to Bloomingbit. On the adjacent tax question, he struck a cautious note: cryptocurrency taxation should "take various circumstances into full consideration," Yonhap reported.

That phrasing leaves room for delay without committing to one. Lawmakers have already flagged the core sequencing problem — a tax regime could take effect before the basic legal framework for the sector exists.

Why is the 2027 crypto tax under pressure?

The crypto tax program is currently targeted to take effect on January 1, 2027. It has already been delayed three times, amid disputes over fairness and infrastructure that regulators concede is not yet built out.

Public pressure is compounding. In May, a petition seeking full repeal of the planned tax crossed the 50,000-signature threshold required to trigger a legislative review under the national petition program. A second petition, filed in August and seeking a two-year deferral, reached 50,000 signatures by mid-September — roughly two months.

Kim Min-seok, leader of the ruling Democratic Party of Korea, signaled a shift in tone on Thursday. "Recently, there have been growing calls and diverse opinions on this issue, so yesterday I raised the need to conduct a thorough final review," Kim said, according to Yonhap. His comment suggests flexibility from authorities who had previously insisted on the 2027 timeline, though it stops short of proposing a new date.

What happens next?

The National Tax Service is proceeding on its own schedule. It plans to finalize its digital asset tax notice draft by October 30, followed by a preliminary review and public notice in November, local outlet Digital Asset reported on Thursday.

That timeline creates a tension the government has not resolved: administrative preparation for the tax advances on schedule while the political leadership openly reconsiders whether the tax should start on time. The Digital Asset Basic Act, meanwhile, has no published deadline of its own.

The practical takeaway is straightforward. Korea's crypto sector is moving toward formal licensing and stablecoin rules, but the tax that would fund and discipline that market may not arrive in step with the framework it depends on.