South Korea’s Digital Asset Basic Act has entered the final stretch of government deliberations. FSC Chairman Lee Eog-weon told lawmakers at a parliamentary hearing on October 22 that consultations on the bill were nearing completion, with officials planning to send it to the National Assembly “as soon as possible” — and a government and ruling-party goal of passing it by the end of 2026.
One important asterisk: as of October 22, the bill has not actually been introduced, reviewed, or passed. “Final stage” here means the last round of government-level talks, not the finish line. Korea is known for moving fast on digital asset policy, and the legislation is about to test just how fast.
Inside the Digital Asset Basic Act
The centerpiece is a dedicated licensing regime for crypto exchanges, replacing today’s patchwork where venues operate mainly as AML-registered reporting entities. The draft subdivides digital asset businesses into trading, brokerage, custody, payment and transfer, discretionary management, advisory, order transmission, and exchange agency services — a taxonomy that gives every compliance team a new checklist to love.
Stablecoin rules are the other flashpoint. One proposal would require a bank-led consortium to hold at least 51% of any won-denominated stablecoin issuer, with foreign issuers needing a Korean branch or subsidiary, an FSC license, and reserves held in domestic custody. Capital minimums range from roughly KRW 500 million in the original text to KRW 5 billion in competing bills — the Value-Stabilised Assets Act and the Payment Innovation Act — while the FSC and Bank of Korea remain at odds over who gets to issue at all.
What Happens Next
The plan: introduce the bill in the National Assembly as soon as talks wrap, with the Political Affairs Committee’s bill-review subcommittee expected to take it up in November. Licensing applications could open in late 2026 or early 2027 under industry estimates, though no official schedule exists. Meanwhile, the crypto tax framework — scheduled to take effect January 1, 2027 after three delays — is under renewed review, with a draft tax plan due by October 30.
Exchange licensing, stablecoin issuance, and taxation are all converging on the same quarter. Seoul’s regulatory calendar for the rest of 2026 just became the one to watch.
