South Korea’s FSC to Run Digital Asset Infrastructure Task Force Through 2028 as Basic Law Drive Accelerates

South Korea’s government and ruling party have pledged to speed up legislation in the second half of this year for the Digital Asset Basic Act, the second phase of the country’s virtual-asset framework. Even so, follow-up work needed to put the system in place is set to continue through 2028.

According to materials the Financial Services Commission submitted to the National Assembly on September 3 ahead of the regular session later this month, the FSC plans to draw up the main provisions of the Digital Asset Basic Act within this year. The proposal will be developed through the Virtual Asset Committee and consultations between the government and the ruling party, with the goal of establishing a regulatory framework covering the digital-asset industry, markets and users.

Preparation for implementation will take additional time after the bill is drafted. In the report, the FSC said it will operate a task force through 2028 to handle subordinate legislation for the basic law and build infrastructure for the digital-asset ecosystem, including industry associations.

That means a sizable gap could emerge between drafting the law this year and applying the system to the market, even if the bill moves quickly through the National Assembly. After the law is enacted, authorities would still need to finalize detailed rules such as enforcement decrees and complete the market infrastructure required for implementation.

The timeline underscores a potential disconnect between the government and ruling party’s push to pass the legislation within this year and the point at which the system is fully established. Regardless of when the National Assembly processes the bill, financial authorities are preparing follow-up measures for implementation with a target horizon of 2028.

The FSC also cited limits in the current virtual-asset regulatory framework as a reason for pursuing the basic law. It said the domestic system has so far focused on illegal activity and user protection, leaving regulation of broader industry and market issues such as business conduct, disclosure and distribution relatively underdeveloped.

The FSC plans to expand beyond the current user-protection-centered approach and build an integrated legal framework for digital assets that covers businesses, markets and users. It will work out the details through consultations with relevant agencies and by gathering expert opinion.