The Democratic Party of Korea's policy committee and the virtual asset task force (TF) said they would each introduce separate bills as their differences have not narrowed over the core issues of the so-called second-phase virtual asset law, the Digital Asset Basic Act: "bank-led stablecoin issuance" and "limits on major shareholders' equity in virtual asset exchanges." The industry is voicing concern that "with conflicts intensifying within the ruling bloc, it will not be easy for the bill to pass."
According to a compilation of ChosunBiz reporting on the 20th, the Democratic Party of Korea's policy committee and the virtual asset TF are each preparing a Digital Asset Basic Act bill. The Digital Asset Basic Act is expected to include provisions for investor protection and industry development, such as virtual asset issuance, distribution, disclosure, and exchange governance. However, the proposals on the core issues—bank-led stablecoin issuance and limits on major shareholders' equity in exchanges—are said to be included only in the policy committee's bill and omitted from the TF's bill.
Both bills appear likely to be introduced around the end of this month. The Digital Asset TF plans to hold a final meeting with about 20 advisory committee members on the 24th to wrap up the bill. Once the two bills are introduced, both will be sent to the National Policy Committee, the standing committee with jurisdiction in the National Assembly. The National Policy Committee includes lawmakers from the policy committee, TF members, and opposition lawmakers.
A National Assembly official predicted, "If the two bills go to the National Policy Committee, the clash over differences surrounding the core issues will only grow."
Even if it passes the National Policy Committee, the process of review by The National Assembly's Legislation and Judiciary Committee and a plenary vote remains. With local elections scheduled for early Jun., the view is that an agreement must be reached in the National Policy Committee by Apr. at the latest. A TF official said, "If the political landscape shifts into the June local election phase, discussions related to the second-phase virtual asset law will inevitably be pushed down the priority list. There isn't much time."
In the industry, there are concerns that the introduction of the bill may be delayed into another year. An industry official said, "Talk of the second-phase law began in the middle of last year, yet more than half a year has passed without even introducing a bill, which is very frustrating," adding, "It raises doubts about whether the government and political circles are interested in industrial development."