South Korea Speeds Up Digital Asset Regulation Amid Global Advancements

South Korea's Financial Services Commission (FSC) is accelerating work on its Digital Asset Framework Act, aiming to complete it by fall. The legislation will cover stablecoin issuance, Virtual Asset Service Provider (VASP) rules, and other parts of the digital asset market.

Lawmakers have been pressing for faster progress, citing advancements in digital asset regulation in the United States. They point out that South Korea risks falling behind if its government proposal remains unfinished.

The proposed law forms the second phase of South Korea's virtual-asset regulatory framework and is expected to set rules covering stablecoin issuance, VASP disclosures, internal controls, and other parts of the domestic crypto market.