Digital Asset Basic Act legislation delayed… “Ruling-party–government talks likely postponed again amid Middle East risks”

The government and the ruling party’s unified draft of the Digital Asset Basic Act (second-phase legislation), which includes stablecoin regulation, is expected to be finalized later than originally planned.

According to industry sources on the 16th, the Democratic Party of Korea and the government are also likely to be unable to hold a ruling-party–government consultative meeting on the Digital Asset Basic Act this week. The government and the ruling party had originally planned to discuss the final draft— including the direction of stablecoin-related regulation—at a ruling-party–government meeting on the 5th, but the meeting was postponed as heightened tensions in the Middle East unsettled the domestic stock market.

As a result, observers say disruptions have become unavoidable to the policy-task timeline to complete stablecoin-related legislation by March.

In political circles, there is also a view that discussions on capital-market stabilization will take priority for the time being. The Presidential Office is set to hold a meeting on the theme of “capital-market stabilization and normalization” on the 18th, chaired by President Lee Jae-myung, and discussions are expected to continue to review recent financial-market conditions.