Crypto▼ Bearish
South Korea fast-tracks crypto Phase 2, 22% tax looms
Record $346M stablecoin outflow prompts Seoul to finalize stablecoin rules and ETF access by 2027. A capital gains tax on profits over $1,700 stirs opposition.
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South Korea is accelerating the second phase of its crypto regulatory overhaul after a record $346 million in stablecoin outflows left the country in June. The money moved to overseas exchanges that offer high-risk derivatives and tokenized real-world assets, services not available domestically.
That outflow represented 78% of South Korean investors' net purchases of overseas stocks in the same month, according to reported data. For Rep. Lee Jong-wook of the main opposition People Power Party, the numbers were a signal that the government needed to move faster on updating the rules.
"The government must comprehensively examine its investor protection and supervisory frameworks again and move swiftly to improve regulations," Lee said.