FSC Chief Says Digital Asset Framework Act in Final Talks, Seeks Fast Introduction

Financial Services Commission Chairman Kim Byoung-hwan said consultations on the government’s draft Digital Asset Framework Act are in their final stages. He also said the Ministry of Economy and Finance is gathering opinions on virtual-asset, or cryptocurrency, taxation scheduled to take effect next year.

Kim made the remarks on Oct. 22 during a National Assembly audit by the Political Affairs Committee. “Legislation related to digital assets is in the final stage of consultations, and we will do our best to have it introduced as quickly as possible,” he said.

During the hearing, lawmakers raised concerns that taxation could be implemented before an industry regulatory framework is in place. Song Eon-seok, a lawmaker from the ruling People Power Party, said the government told the president in a July policy briefing that it would prepare the bill within the year, but has yet to present its draft.

Song said the government would be imposing taxes before legally clarifying what kind of product digital assets are. He argued that the tax should either be abolished or its implementation postponed until the bill is prepared.

Kim did not present a separate position on the timing of the tax. He said there were a variety of views on the issue and that the Ministry of Economy and Finance was collecting opinions.