Financial Services Commission–Democratic Party talks on ‘Phase 2’ crypto legislation postponed…schedule pushed back amid Middle East risks

YM Lee

Summary

It said that policy talks between the Financial Services Commission and the Democratic Party of Korea on Phase 2 legislation on virtual assets (coins) have been postponed.
It said the schedule was delayed so financial authorities can focus on market-stabilization measures as heightened tensions in the Middle East have increased financial market volatility in Korea.
It said the talks were expected to discuss key provisions of the Digital Asset Framework Act, including a 15–20% cap on controlling shareholders’ stakes in crypto exchanges.

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Policy talks between the Financial Services Commission (FSC) and the Democratic Party of Korea, which had been scheduled in connection with Phase 2 legislation on virtual assets (coins), have been postponed.

The closed-door party-government meeting between the FSC and the Democratic Party, which had been set to be held on the morning of the 5th at the National Assembly Members’ Office Building in Yeouido, Seoul, has been deferred.

The meeting was originally to be attended by FSC Chairman Lee Eok-won, officials from the Democratic Party’s Policy Committee, lawmakers on the National Assembly’s Political Affairs Committee, and members of the Democratic Party’s Digital Asset Task Force (TF), to discuss a bill to enact the “Digital Asset Framework Act,” the Phase 2 virtual-asset legislation.

However, the schedule was reportedly pushed back on the view that, as tensions in the Middle East have recently intensified and volatility in Korea’s financial markets has increased, financial authorities need to focus on market-stabilization measures. A date to resume the talks has not yet been set.

The talks were expected to cover key elements of the Digital Asset Framework Act, including regulatory measures to cap controlling shareholders’ stakes in crypto exchanges at around 15–20%.