Democratic Party: "Introduce second-stage virtual asset bill next month"…government draft delay variable

Digital Asset TF to finalize content on the 22nd

Over stablecoin issuing entities

Government draft disrupted by differences between the Financial Services Commission and the Bank of Korea

The Democratic Party of Korea announced on the 11th that it plans to introduce the second-stage virtual asset bill by January next year. If the Financial Services Commission and the Bank of Korea submit a coordinated government draft before then, the party plans to review it together.

The Democratic Party Digital Asset Task Force (TF) discussed the direction of the second-stage virtual asset legislation that day with Financial Services Commission officials in attendance. The second-stage legislation covers businesses, listing and disclosure, issuance and distribution, and other matters concerning the virtual asset industry and market. It is distinguished from the Virtual Asset User Protection Act, which came into effect in July last year, and is referred to as "second-stage legislation" or an "industry-specific law."

Originally, the Democratic Party TF had requested that the Financial Services Commission submit a second-stage government draft by the previous day. However, the Financial Services Commission failed to submit the bill because it could not narrow its differences with the Bank of Korea over the issuer of stablecoins (cryptocurrencies whose currency and value are linked) and supervisory authority.

After the meeting, TF Chair Lee Jeong-mun told reporters, "We strongly raised the issue of the government's failure to submit the bill, and the Financial Services Commission responded that it will resolve the differences soon." He added, "At the next meeting scheduled for the 22nd, the TF plans to decide on how to proceed with the legislative process on its own," and "If the government draft arrives by then, we will discuss it together."

Currently, a total of eight virtual asset-related bills have been submitted to the National Assembly. The TF's plan is to create the final legislation based on the submitted bills if the government does not present a draft. As the National Assembly has entered a 'filibuster standoff,' the Democratic Party's initial goal of passing legislation within the year has become physically difficult.

Kang Jun-hyun, a Democratic Party whip of the National Assembly's Political Affairs Committee, said, "We will narrow differences within the year and introduce the bill in January, after which it will go through the National Assembly review process."

Reporter Kang Hyun-woo hkang@hankyung.com