South Korea's Digital Asset Innovation Act legislative process delayed again

PANews reported on July 15 that according to Digital Times, the legislative process of South Korea's "Digital Asset Innovation Act" has been delayed again. The bill originally planned to be submitted this month was forced to be postponed for 1-2 months due to disagreements between financial regulators and the industry. The bill aims to establish the legal definition of digital assets and Korean won stablecoins, and to build an industry regulatory framework. It is regarded as a basic law in the field of digital assets in South Korea.

Currently, South Korea has only passed the Virtual Asset User Protection Act, which focuses on investor protection, in 2023, and basic legislation covering the entire industry chain, including issuance and circulation, has been absent for a long time. Although President Lee Jae-myung expressed support for the development of the digital asset industry during his campaign, regulators and the industry still have disputes over key terms such as the issuer of stablecoins and the division of authority over central bank digital currencies (CBDCs).