FSC to Discuss Key Issues in Phase-Two Legislation at the 1st Virtual Asset Committee Meeting of 2026

South Korea’s financial authorities are set to begin discussions on “phase-two legislation” aimed at improving the institutional framework for the virtual asset (cryptocurrency) market and broadening its base. The centerpiece is to overhaul the issuance framework for stablecoins—virtual assets whose value is pegged to fiat currencies—and to establish standards for dispersed ownership of virtual asset exchanges.

On the 4th, the Financial Services Commission (FSC) said it held the “1st Virtual Asset Committee Meeting of 2026” at 10 a.m. at the Government Complex Seoul, chaired by Vice Chairman Kwon Dae-young. Attendees included relevant ministries and agencies such as the FSC, the Ministry of Science and ICT, the Ministry of Economy and Finance, the Ministry of Justice, and the Financial Supervisory Service (FSS), along with private-sector experts.

In opening remarks, Vice Chairman Kwon said the government would accelerate policy implementation on a two-track basis—“institutional overhaul” and “expanding the market’s base.” To this end, it also plans to strengthen communication with the Virtual Asset Committee, the government’s virtual asset policy body.

The committee shared the FSS’s interim review findings on the virtual asset erroneous-payment incident that occurred on Feb. 6 and discussed follow-up plans. Members agreed to ensure user compensation is adequately carried out through checks by an emergency response task force, and to prioritize building internal control systems by improving exchanges’ self-regulation.

The meeting also discussed introducing safeguards to bolster market confidence. Measures considered included setting internal control standards for exchanges as well as IT and security standards, and imposing no-fault liability for damages.

In particular, the Virtual Asset Committee held in-depth discussions on the need for a bank-centric stablecoin issuance framework (equity stake 50%+1)—a key issue in drafting the Digital Asset Basic Act—and on standards for dispersed ownership of virtual asset exchanges.

Based on the discussions, the FSC plans to push improvements to self-regulation by the Digital Asset eXchange Alliance (DAXA) and continue ruling-party–government consultations toward enacting the law.