National Assembly Hearing on Digital Asset Framework Act Still Unscheduled, Debate May Slip to November

The schedule for a National Assembly public hearing on the Digital Asset Framework Act has yet to be finalized.

Asia Today reported on Sept. 29 that the hearing, which had initially been floated for late September, still has not been set. The government has yet to submit its draft proposal, and a roughly three-week parliamentary audit is scheduled to begin on Oct. 6. That has raised the possibility that related discussions could be pushed back to November or later.

Political circles had originally discussed a timeline that would start with a September public hearing, move to a review by the National Assembly's bill review subcommittee in November, and lead to passage of the Digital Asset Framework Act during the regular session. The Financial Services Commission said on Sept. 22 that it was preparing to ensure discussions could proceed at the November subcommittee meeting even if submission of the government's proposal is delayed.

The Digital Asset Framework Act would be the second phase of legislation following the Virtual Asset User Protection Act, which took effect in July 2024. It is intended to govern the issuance and distribution of digital assets, the business operations of service providers, and the overall operation of the market. Key issues under review include the entities allowed to issue won-denominated stablecoins, oversight measures for those tokens, and limits on ownership stakes held by major shareholders of exchanges.

Separately, under the current Income Tax Act, taxation on income from virtual assets is set to begin in January 2027. Income above the annual basic deduction of 2.5 million won ($1,810) will be taxed at 22%, including local income tax.