South Korea’s Digital Asset Basic Act Delayed Again as Committee Review Moves to May 12

South Korea’s review of the Digital Asset Basic Act has been delayed again. Ongoing disagreements within the ruling party over key provisions have also left it unclear whether the bill will be put on the agenda.

Edaily reported on April 25 that the first bill-review subcommittee of the National Assembly’s Political Affairs Committee, which handles financial matters, postponed its meeting to May 12 from April 27. The ruling and opposition parties also agreed to hold the second subcommittee, which covers non-financial matters, on May 11 and the first subcommittee on May 12, the report said.

Even under that revised schedule, the Digital Asset Basic Act is unlikely to be discussed. The ruling party has yet to resolve internal differences over a regulation that would restrict the stakes of major shareholders in virtual-asset exchanges.

The National Assembly Research Service has already presented its view twice that the regulation could be unconstitutional. That has increased the burden of advancing the bill in its current form.

The political calendar is adding another complication. Discussion of the bill could be delayed further by the ruling party’s floor leader election in early May, local elections in June and subsequent negotiations over the National Assembly’s committee makeup.

The Digital Asset Basic Act is a comprehensive bill covering the issuance, distribution, disclosure and listing of virtual assets. It is regarded as key legislation for investor protection and for reducing market uncertainty, but repeated delays are set to keep that uncertainty in place.