Delay in Passage of Digital Asset Basic Law

The Digital Asset Basic Law has not passed the National Assembly for over a year. The Democratic Party and the government aim to legislate by 2026, but discussions are delayed due to disagreements over the issuance of won-based stablecoins and restrictions on the shareholding of major shareholders in virtual asset exchanges. Following the launch of the Lee Jae-myung government last year, the institutionalization of digital assets became a national agenda, and the Democratic Party is likely to reactivate the digital asset task force after its party convention on the 17th of next month. A key issue is the issuer of won-based stablecoins, with financial authorities arguing that banks should hold a majority stake. In contrast, the industry is pushing back, claiming that fintech and non-bank operators should also be given opportunities to enter the market. Another controversy involves the shareholding restrictions for major shareholders in virtual asset exchanges, with the Democratic Party and the Financial Services Commission considering setting a cap of around 20% on major shareholders' stakes and allowing a three-year grace period. However, exchanges are strongly opposing this due to concerns over infringement of major shareholders' property rights. As the passage of the law is delayed, it seems that it will take time to implement the actual system, including the revision of enforcement regulations.

Disclaimer: This content is provided for general branding and informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online events, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets or to use any services. Crypto assets are highly volatile and may result in loss. WEEX services and online events may not be available in all regions and are subject to applicable laws, regulations, and eligibility requirements. You are responsible for ensuring that your use of WEEX services complies with local laws and for carefully assessing the risks before participating in any crypto-related activities.