Digital Asset Basic Act: Korea's comprehensive crypto framework
The Digital Asset Basic Act (DABA) is South Korea's comprehensive cryptocurrency regulation framework, replacing the previous patchwork of laws. It brings all crypto activities under unified Financial Services Commission (FSC) oversight.
| Aspect | Details |
|---|---|
| Full Name | λμ§νΈμμ° κΈ°λ³Έλ² (Digital Asset Basic Act) |
| Passed | June 2025 |
| Implementation | Throughout 2026 |
| Primary Regulator | Financial Services Commission (FSC) |
| Scope | Exchanges, token issuance, stablecoins, custody, NFTs |
Virtual Asset User Protection Act passed (precursor to DABA)
User Protection Act takes effect
DABA passed by National Assembly
Stablecoin rules deadlock - delayed to 2026
Corporates allowed to open crypto accounts (after 9-year ban)
Full DABA implementation with subordinate regulations
| Exchange | Status | Market Share |
|---|---|---|
| Upbit (Dunamu) | Registered | ~80% |
| Bithumb | Registered | ~10% |
| Coinone | Registered | ~5% |
| Korbit | Registered | ~3% |
| Gopax | Registered | ~2% |
Note: Upbit dominates the Korean market with ~80% share. Korea has significant won-crypto liquidity but limited foreign access.
| Cost Category | Estimate (KRW) | Estimate (USD) |
|---|---|---|
| FSC Registration | Varies | - |
| ISMS Certification | β©50M - 200M | $35K-140K |
| Bank Partnership Setup | β©100M+ | $70K+ |
| Legal & Compliance | β©100M - 300M | $70K-210K |
| System Security | β©200M - 500M | $140K-350K |
| Operational Setup | β©100M - 300M | $70K-210K |
| Total Estimate | β©500M - 1.5B | $350K - $1M+ |
Korea requires crypto exchanges to partner with banks for real-name verification. Each user must link their exchange account to a Korean bank account in their own name. This effectively:
All exchanges must obtain ISMS (Information Security Management System) certification from KISA (Korea Internet & Security Agency). This involves:
Since 2017, Korean corporations were banned from opening crypto exchange accounts. In February 2026, this ban was lifted, allowing corporates to participate again - a major market development.
| Factor | π°π· Korea | π―π΅ Japan | πΈπ¬ Singapore |
|---|---|---|---|
| Framework | DABA (2026) | PSA (2017) | PSA (2020) |
| Market Size | Large | Large | Medium |
| Foreign Access | Very Limited | Limited | Open |
| Crypto Tax | 20% (from 2025) | Up to 55% | 0% |
| Stablecoins | Pending | Framework | Framework |
| Corporate Trading | Allowed (2026) | Allowed | Allowed |
DABA (Digital Asset Basic Act) is South Korea's comprehensive crypto regulation framework passed in June 2025. It consolidates all virtual asset rules under FSC oversight, covering exchanges, token issuance, stablecoins, and custody.
DABA is being implemented throughout 2026. Some provisions are already active, while others (particularly stablecoin rules) are still being finalized through subordinate regulations.
Technically possible but practically very difficult due to:
From 2025, Korea taxes crypto gains at 20% above β©2.5 million annual exemption. This was delayed multiple times from the original 2022 implementation.
Last Updated: February 26, 2026
Sources: FSC, KISA, National Assembly records
Disclaimer: For educational purposes only. Consult licensed professionals for specific advice.