- South Korea restarts Digital Asset Basic Act talks as authorities target completion of the bill this year.
- Stablecoin rules and exchange ownership limits remain the main issues in ongoing discussions.
- Lawmakers seek a compromise on disputed provisions after months of delays in advancing the legislation.
South Korea has resumed efforts to advance its second-phase virtual asset legislation after a four-month pause in the legislative process. Financial authorities and lawmakers resumed discussions on the Digital Asset Basic Act, with the government aiming to complete the legislation within the year.
The move follows the suspension of a planned party-government consultation process in March, which delayed efforts to finalize the proposed framework. While officials are working to address remaining issues, industry participants remain cautious after previous attempts to move the bill forward failed to reach the final stages.
Authorities and Lawmakers Resume Digital Asset Framework Talks
Financial authorities held a party-government consultation meeting with the Democratic Party of Korea at the National Assembly Members’ Office Building in Yeouido, Seoul, to discuss the direction of the government’s Digital Asset Basic Act proposal.
The meeting included Financial Services Commission (FSC) Chairman Lee Eog-weon and Financial Supervisory Service (FSS) Governor Lee Chan-jin, alongside lawmakers from the Democratic Party’s National Policy Committee.
The discussion was the first major legislative meeting on the bill in four months. Earlier plans to finalize the government proposal through a party-government consultation in March were delayed indefinitely as attention shifted toward responding to the U.S.-Iran war. Following the postponement, related legislative procedures were suspended.
Stablecoin Rules and Exchange Ownership Limits Remain Key Issues
The Digital Asset Basic Act focuses on two major areas: establishing mandatory bank-centered won stablecoin consortiums and setting limits on the ownership structure of major cryptocurrency exchanges.
Among these issues, restrictions on exchange shareholders have received major attention. The proposed framework included a plan to limit major shareholders’ ownership stakes in exchanges to between 10% and 15%.
However, concerns were raised over the legality of the proposal. The National Assembly Research Service reportedly reviewed the ownership cap twice and suggested that the measure could face constitutional concerns. Differences of opinion were also reported within the ruling bloc regarding the proposed restrictions.
Government Seeks Compromise Before Legislative Deadline
A compromise on the shareholder ownership issue is reportedly being considered as discussions continue. An aide to a ruling party lawmaker on the National Policy Committee said that some mediation was emerging around previously disputed areas.
The aide added that if lawmakers aim to complete the legislation within the year, the government bill would likely need to be introduced by early August at the latest.
Related: South Korea Prepares Crypto Tax Rollout Despite Repeal Push
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