South Korea Crypto Regulation Faces Calls for Clarity Ahead of 2029 Tax

South Korea crypto regulation needs greater clarity to support domestic digital asset businesses and prepare investors for taxation of cryptocurrency gains, lawmakers told the World Digital Assets Forum in Seoul.

Democratic Party lawmaker Min Byoung-dug said his proposed Digital Asset Basic Act would establish rules for stablecoin issuers, tokenised real-world assets and institutional investment while strengthening protection against security breaches.

He argued that regulatory gaps prevent local companies from offering services available from overseas competitors.

People Power Party lawmaker Park Soo-young supported the government's proposal to postpone taxation of cryptocurrency gains until 2029 but called for clearer rules on calculating taxable profits and carrying forward losses.

The proposals could influence institutional participation and investor compliance.