South Korea's Financial Services Commission is drafting a consolidated digital asset bill that would bring stablecoins and exchanges under a single regulatory framework, according to a CoinTelegraph report. The move comes as opposition lawmakers push to repeal a 22% capital gains tax on crypto assets scheduled to take effect in 2027.

The proposed legislation would mark the first time Seoul has attempted comprehensive oversight of stablecoin issuance and redemption mechanics. Previous rules focused narrowly on exchange licensing and anti-money-laundering compliance. Market observers noted the FSC's expanded scope suggests regulators now view stablecoins as systemic plumbing rather than peripheral products.

The legislative push follows a year in which won-denominated stablecoin volumes remained negligible compared to dollar-pegged alternatives. Tether's USDT and Circle's USDC dominate Korean exchange order books, while domestic projects such as KDROP and KRWO have struggled to gain traction. The FSC's draft bill aims to create a legal basis for won-backed stablecoins to compete onshore, potentially redirecting settlement flows away from offshore rails.

Trading desks in Seoul and Singapore are watching two variables: whether the bill grants exclusive issuance rights to banks, and whether the 22% tax repeal survives parliamentary debate. If banks become the sole stablecoin gatekeepers, non-bank fintechs could be locked out of the won-stablecoin market entirely. Meanwhile, the opposition's tax repeal bid has gathered momentum after the ruling party's electoral setbacks in April.

• South Korea's FSC is drafting a consolidated digital asset bill covering stablecoins and exchanges for the first time.