Min Byoung-dug envisions Korea as Asian digital finance hub, while Park Soo-young calls for clearer crypto tax rules
South Korea needs clearer rules for companies looking to expand their digital asset businesses, and for investors facing a tax on crypto gains, lawmakers said Monday at the World Digital Assets Forum in Seoul.
Rep. Min Byoung-dug of the Democratic Party of Korea said the Digital Asset Basic Act he proposed would give financial institutions and digital asset firms a base in Korea from which to expand across Asia. Gaps in Korean law already prevent domestic firms from offering services their overseas rivals provide, he said.
"A gap in the rules becomes a gap in competitiveness," Min said.
His bill would set standards for stablecoin issuers, establish rules for tokenizing real-world assets and give institutional investors a legal basis to participate in the digital asset market. Min also called for measures to protect investors in the event of a security breach.
"We will make Korea a digital finance hub that companies turn to first when they want to launch or expand their business in Asia," he said.
Rep. Park Soo-young of the People Power Party welcomed the government's recent proposal to postpone the tax on crypto gains until 2029 and allow investors to carry losses forward for three years.
"Deferring the tax is not the end but the beginning," Park said in prepared remarks.
After three previous delays, Park urged lawmakers to clarify how investors should calculate their taxable gains, including how to determine the purchase price of their holdings. He said no domestic exchange had completed preparations for the tax.
"We need a reasonable tax system that allows investors to carry losses forward and offset gains against losses, and a system that can accurately track transactions at home and abroad," said Park.
Park also urged lawmakers to use the proposed two-year delay to strengthen investor protections and give digital asset firms greater certainty.
"We need rules that give companies a predictable environment in which to develop new technologies and services so that Korea can lead the digital asset market," he said.
jwc@heraldcorp.com
