Cha & Kwon has authored the South Korea “Trends & Developments” chapter of the Chambers Blockchain & Crypto-Assets 2026 Global Practice Guide, one of the most widely referenced international guides to digital asset law. Written by Ohoon Kwon and Yeon Seo, the chapter sets out the five regulatory developments most likely to shape foreign market entry into Korea over the next 18 months.

Titled “Korea’s 2026 Crossroads in Digital Asset Regulation,” the chapter explains how Korea’s key reforms are advancing on different timetables — and why which one matters most depends on what a foreign business intends to do in the market:

• Token security issuance from 2027. Amendments to the Capital Markets Act and the Electronic Securities Act, passed on 15 January 2026, recognise distributed ledgers as valid registers of legal title and open secondary-market intermediation for investment contract securities.
• The stalled Digital Asset Basic Act (DABA). The statute on which centralised-exchange and won-pegged stablecoin regulation depends remains under committee review, held up by a Bank of Korea–FSC dispute over stablecoin issuer eligibility.
• The first enforcement wave under the VAUPA. Korea’s first market-manipulation prosecution under the Virtual Asset User Protection Act reached conviction in February 2026, as regulators expand AI-driven surveillance of algorithmic and API-based trading.
• Won-denominated corporate crypto accounts. The Financial Services Commission’s phased roadmap is gradually lifting the restriction on Korean corporate and institutional holders — though banks retain a practical case-by-case veto at onboarding.
• Personal income tax on crypto gains from 2027. A 20% tax (22% with local surtax) on virtual asset gains is scheduled to take effect, with cross-venue record-keeping the central open question.

The full chapter is available on the Chambers Global Practice Guides platform: Blockchain & Crypto-Assets 2026 — South Korea: Trends & Developments.

The chapter reflects the firm’s day-to-day work advising virtual asset businesses, foreign issuers, and fintech companies on Korean regulation across the VAUPA, the Specified Financial Information Act, the capital-markets amendments, and the pending DABA framework. For deeper background, see our Korea Crypto Law hub and our analysis of how the stablecoin and STO tracks are moving separately.

Cha & Kwon Law Offices advises virtual asset businesses, fintech companies, and foreign investors on Korean regulatory compliance. For consultation, contact us at contact@chakwon.com or visit chakwon.com.

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