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South Korea is accelerating work on its Digital Asset Framework Act, with the government targeting a fall filing and completion of the second-phase crypto legislation before year-end.
Financial Services Commission Chairman Lee Eog-weon told the National Assembly’s Political Affairs Committee on August 24 that preparations were underway and consultations would now move faster. Asked whether a proposal could be introduced in the fall, Lee said the commission would make every effort to meet that timetable.
September Consolidated Crypto Bill Remains Under Discussion
Government and ruling Democratic Party officials have been discussing a consolidated bill that could be introduced as early as September.
National Assembly Political Affairs Committee Chairman Yoo Dong-soo has been discussed as a possible sponsor of a proposal combining the government’s position with ruling-party legislation. Yoo’s office said no final decision has been made, while a government official said authorities hope he will introduce the package.
Ten digital asset and stablecoin bills are already pending, five introduced by Democratic Party lawmakers and five by lawmakers from the opposition People Power Party. Democratic Party lawmaker Min Byung-deok said on August 21 that South Korea’s second-phase virtual asset legislation should pass during the second half of 2026.
Bank-Majority Stablecoin Model Remains Unresolved
The legislation is expected to establish broader rules for digital asset issuance, service providers and won-backed stablecoins.
One of the main disputes concerns stablecoin ownership. Financial authorities have backed a proposed structure under which banks would control more than 50% of a won-stablecoin issuer, citing financial stability and customer protection.
Some Democratic Party lawmakers and crypto industry participants oppose mandatory bank control. Lawmakers have also remained divided over proposed ownership limits for major shareholders of domestic crypto exchanges.
FSC Targets Year-End Passage of Phase-Two Crypto Law
South Korea’s Virtual Asset User Protection Act took effect on July 19, 2024, establishing rules for safeguarding customer assets, supervising service providers and punishing unfair trading.
The Digital Asset Framework Act is intended to build the second phase of that regime, including areas such as issuance and stablecoins that were not fully addressed by the first law.
The FSC has committed to completing digital asset legislation during the second half of 2026. Lee said August 24 that consultations would accelerate, leaving a fall filing as the immediate target while year-end passage remains the government’s goal.
