Talks Resume on the Basic Act on Digital Assets… Ruling Party–Government Policy Meeting to Be Held on the 5th

The ruling and opposition parties and the government are restarting discussions to enact the Basic Act on Digital Assets. A ruling party–government policy meeting on the issue is scheduled to be held on the 5th.

According to the industry on the 3rd, the ruling party and the government will hold a policy meeting on the 5th with the Basic Act on Digital Assets—part of the second phase of legislation on virtual assets (digital assets)—as the agenda. This will be the first such ruling party–government meeting centered on the bill in about three months, since Dec. 1 last year.

Ahead of that, the Democratic Party of Korea’s Digital Assets TF held an internal meeting that day to coordinate key issues in the bill. On the 4th, the Financial Services Commission is expected to convene its first Virtual Asset Committee since the launch of the new government to discuss related pending issues.

Legislation has been delayed due to differences over major points of contention, but momentum is said to be picking up again this month.

Key issues include limits on major shareholders’ stakes in digital asset exchanges and who is eligible to issue stablecoins. The government and the ruling party’s policy committee are reviewing a plan to cap major shareholders’ stakes in exchanges at 15~20%, in line with the level applied to alternative trading systems (ATS). For stablecoin issuance, a bank-led consortium structure is being discussed.

However, the industry is pushing back, arguing that limits on major shareholders’ stakes in exchanges amount to excessive regulation. Concerns have also been raised that a bank-centered issuance structure could hinder innovation. Academia, too, is calling for a cautious approach to some provisions.

With some lawmakers within the ruling party and the opposition also reported to have differing views on the stake-cap plan, further debate is expected during the review process at the National Assembly’s Political Affairs Committee.

In addition, the sponsor of the bill has yet to be finalized. Rep. Kang Jun-hyeon, the ruling party floor secretary on the Political Affairs Committee; Rep. Lee Jeong-moon, chair of the Democratic Party’s Digital Assets TF; and Han Jeong-ae, chair of the party’s policy committee, are being mentioned as potential sponsors, but no final decision has been made.