TL;DR
South Korea’s Digital Asset Framework Act is in the final stage of government consultations, but the draft has not yet been formally introduced or enacted.
The planned framework is expected to cover exchange licensing, stablecoin issuance and clearer legal definitions for digital assets, while specific provisions may still change.
Lawmakers are also debating whether crypto taxation should begin before the regulatory structure is established, with implementation currently scheduled for 2027.
South Korea is nearing the end of government consultations on its Digital Asset Framework Act, bringing crypto regulation closer to formal introduction. During a National Assembly audit, the Financial Services Commission chairman said talks were in their final stage and pledged to move the bill quickly. The framework remains a draft under consultation, not enacted legislation. The update advances South Korea’s effort to establish clearer rules for digital assets and follows work on crypto regulation and stablecoin oversight .
South Korea Moves Toward a Broader Digital Asset Rulebook
The legislation is designed to move beyond user protection toward a framework for the domestic digital asset market. It is expected to address exchange licensing, stablecoin issuance and clearer legal definitions for crypto assets. The government is trying to establish market-wide rules before the framework reaches legislative approval. That direction aligns with efforts to bring tokenized assets and stablecoins into South Korea’s financial rulebook , although specific provisions may still change during consultations and parliamentary review.
The timing has intensified cryptocurrency tax debate. Lawmakers warned that taxation could begin before the broader regulatory framework defines how digital assets should be treated. The current tax program is scheduled to take effect in 2027 after previous delays. Some lawmakers argue that taxation should be postponed or reconsidered until the regulatory structure is established. The FSC chairman did not endorse a specific timetable, saying authorities are gathering different views before determining their position.
Stablecoins remain one of the consequential elements of the planned legislation because the framework is expected to establish rules for issuance and market participation. The bill could provide the legal perimeter for won-denominated stablecoins without making any current project automatically approved. That distinction matters as companies continue testing won-backed stablecoin infrastructure and projects such as KRW1 remain dependent on regulatory approval. The legislation therefore represents a framework under development rather than authorization for individual issuers or products.
The next milestone is introduction of the government bill, followed by National Assembly consideration. The FSC aimed to move the legislation into parliamentary review during the year, while officials now describe interagency consultations as close to completion. Final consultations do not guarantee the bill’s wording, passage date or eventual regulatory requirements. The process nevertheless marks progress from delays surrounding stablecoin governance and broader market oversight, while complementing South Korea’s efforts to develop institutional digital asset regulation .
