Korea Urged to Pass Digital Asset Law Amid Regulatory Vacuum

Ahn Do-geol, floor vice leader of South Korea's Democratic Party, has urged lawmakers to pass the Digital Asset Framework Law and stablecoin regulations quickly. Speaking at a parliamentary seminar on September 10, Ahn said that delaying institutionalization of digital assets will harm the country's competitiveness in the global market.

Ahn pointed out that major economies such as the US, UK, Hong Kong, and Japan have already allowed ETF and ETP products backed by spot and futures digital assets. In contrast, South Korea remains in a regulatory vacuum, driving domestic investor funds into overseas markets where they are not protected by Korean law.

Ahn emphasized that formalizing digital-asset financial products does not mean unconditional deregulation, but rather a balanced system that takes account of on-chain risks such as hard forks. He stressed the importance of stablecoins in preparing for the artificial intelligence era and working towards a framework that allows stablecoins to be circulated and traded in the market alongside a Basic Digital Asset Act.