South Korea Pushes for Fall Passage of Digital Asset Framework Act

During a plenary meeting of the National Assembly’s Political Affairs Committee in Seoul, lawmaker Lee Kang-il urged the government to expedite its proposal for the Digital Asset Framework Act. Lee argued that the delay leaves South Korea vulnerable compared to the United States, where agencies like the SEC and CFTC are already actively categorizing digital assets and integrating them into broader financial systems. Kim acknowledged the need for speed, promising to prioritize the bill during the upcoming fall session.

This second-stage legislation is designed to move beyond basic investor protection to address complex market infrastructure. Key components include comprehensive rules for stablecoin issuance, disclosure obligations, internal controls, and the oversight of virtual asset service providers. The Bank of Korea remains a central voice in these discussions, advocating for a bank-led model for won-denominated stablecoins to safeguard monetary policy. Alongside these efforts, authorities are refining licensing requirements for cross-border transactions and evaluating the legal structure necessary to support spot cryptocurrency ETFs. With the government aiming to integrate these assets into existing financial infrastructure, the focus now turns to whether the FSC can finalize its consolidated proposal in time for the current legislative window.