Summary
- The Digital Asset Basic Act was excluded from the agenda of the National Assembly Political Affairs Committee’s first bill-review subcommittee, making National Assembly passage in the first half of the year effectively unlikely.
- Discussion of the bill has been delayed by differences over who should issue won-denominated stablecoins, how reserve funds should be structured, redemption obligations, and limits on major shareholder stakes in virtual-asset businesses.
- Market participants say delays in the formalization of digital-asset rules are increasing uncertainty over new business initiatives for domestic companies.
Forecast Trend Report by Period
South Korea’s deliberations on a basic law for digital assets have been delayed again, making National Assembly action in the first half of the year effectively out of reach. The holdup in setting rules for stablecoins and other digital assets is also widening the regulatory gap with major overseas markets.
The Digital Asset Basic Act was left off the agenda for the first bill-review subcommittee of the National Assembly’s Political Affairs Committee on May 12, ETNews reported. Lawmakers reviewed 53 bills at the meeting, which was attended by government officials including Kwon Dae-young, vice chairman of the Financial Services Commission.
The session was effectively seen as the last bill-review schedule of the first half before the June 3 local elections. With a reorganization of the Political Affairs Committee and the regular National Assembly session in the second half ahead, discussion of the bill is unlikely to resume before September.
The bill has been stalled by disagreements over who should be allowed to issue won-denominated stablecoins, how reserve funds should be structured, whether redemption obligations should be imposed, and whether major shareholders of virtual-asset businesses should face stake limits.
In particular, limits on major shareholders’ stakes in exchanges have triggered continued industry opposition because the issue is tied to the governance structure of existing operators. The government also has yet to produce a unified proposal.
Market participants say the delay in formalizing digital-asset rules is increasing uncertainty for domestic companies pursuing new business lines.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
