South Korea drafts stablecoin rules, eyes crypto tax repeal

South Korea's Financial Services Commission (FSC) is drafting a consolidated digital asset bill that would cover stablecoin issuance and exchange oversight. Separately, opposition lawmakers are pushing to repeal a 22% crypto gains tax currently scheduled to take effect in 2027. These are two distinct legislative tracks moving in parallel, not a single package.

The stablecoin component would establish issuance standards and supervision, broadly similar in intent to the EU's MiCA stablecoin rules and Hong Kong's recent stablecoin licensing regime. The tax repeal is politically driven, with opposition parties framing it as a retail investor protection measure ahead of elections.

South Korea is one of the largest retail crypto markets in Asia by volume. A 22% tax repeal removes a significant disincentive for Korean retail participation. If repealed or delayed, the demand signal into BTC and major altcoins would be meaningful, arriving at a time when BTC price direction is already a live variable for Philippine operators managing cashier exposure and USDT liquidity.