South Korea Sets November Target for Second Stage Crypto Legislation
The Financial Services Commission (FSC) of South Korea has set November as the target date for reviewing the Digital Asset Framework Act, which is the country's second stage crypto legislation. This move comes after claims that work on the legislation had been delayed.
According to Seo Na-yoon, head of the FSC's virtual asset division, the regulator and lawmakers are moving in the same direction on legislation covering digital asset issuance and distribution, including stablecoins. Speaking at a National Assembly seminar in Seoul, Seo said that differences remain over when the government will submit its draft, but the November review remains part of the planned timetable.
The Digital Asset Framework Act is expected to address areas such as issuance, disclosures, and stablecoin regulation, building on South Korea's first stage crypto legislation focused primarily on user protection and unfair trading practices. The FSC wants the legislation passed quickly and expects discussions to proceed using bills that lawmakers have already introduced alongside the government's proposal.
Min Byung-duk, a Democratic Party lawmaker, said during the seminar that developments surrounding US stablecoin rules had given South Korea a window to complete its own legislation. He argued that if domestic companies and consumers were expected to wait for locally regulated products, South Korea would need its legislation in place.