[Bitcoin Now] Ruling Party Pushes for Digital Asset Law to Pass National Assembly Within This Year... Industry Sighs, Calling It "Virtually Impossible"

Democratic Party Sets Goal of Introducing Bill in September, Passing It Within the Year

Key Issues Remain Unresolved: Ownership Cap and Stablecoin Issuers

Leadership Shuffle Within the Party Adds Further Uncertainty

There are growing expectations that the government and ruling party's push for enacting the Digital Assets Basic Act within this year will face difficulties. Although the Democratic Party of Korea has set a target to introduce the bill in September and pass it through the National Assembly within the year, unresolved issues remain, such as the issuer of stablecoins and restrictions on the equity stakes of major shareholders at virtual asset exchanges. The variable of a change in the party’s policy leadership further complicates the situation.

According to the Financial Services Commission and political circles on July 22, the Democratic Party plans to reactivate its internal Digital Assets Task Force (TF) after its national convention on August 17, and to propose an integrated government-party Digital Assets Basic Act in September. Through this process, the party is aiming for the bill to pass the National Assembly before the end of the year.

The Financial Services Commission also announced as part of its 'Second Half Economic Growth Strategy'—released through a joint briefing with relevant ministries on July 14—that it would establish a legal foundation within the year by introducing legislation subdividing the virtual asset industry, setting up a regulatory system for business conduct, and institutionalizing stablecoins.

The Digital Assets Basic Act represents the second stage of virtual asset legislation that will cover the entire market, including the issuance, distribution, and disclosures of virtual assets. While the first stage—the Act on the Protection of Virtual Asset Users, which came into effect in July 2024—focused on investor protection and unfair trade regulation, the Digital Assets Basic Act is centered on fostering the virtual asset industry and setting entry regulations. The discussion gained momentum last June after Assemblyman Min Byungdeok of the Democratic Party sponsored the first version of the bill, and then, in September 2025, the party launched its Digital Assets Task Force.

For the bill to pass the National Assembly within the year, it must be submitted in September. This is because the National Assembly’s schedule is packed, including the October parliamentary audit and the budget session scheduled until early December.

However, the industry sees many variables before the bill can be introduced in September. The government and the party originally sought to finalize the bill in March, but the Middle East situation and legislative schedules pushed discussions back. Further delays came with the June 3 local elections and the formation of the National Assembly’s latter half leadership. Even if discussions resume now, observers point out that it will be difficult to reach an agreement on the core issues in a short time.

Crucially, the controversies surrounding the bill remain unresolved. There has been significant industry pushback against the proposal to form a consortium of banks holding a 50%+1 share in won-based stablecoin issuance, as well as the plan to limit major shareholders of virtual asset exchanges to a 10-15% equity stake. It is reported that there are even internal disagreements within the party regarding the equity cap proposal.

The change in the party’s policy leadership is another variable. A new policy committee chair will be chosen at the Democratic Party's national convention next month. It will inevitably take time for the new chair to grasp the specific details of the Digital Assets Basic Act and coordinate intra-party-government consultations. Notably, the more time spent on understanding the bill and internal reviews, the higher the likelihood that the bill's introduction will be delayed.

The industry is concerned about the long-term uncertainty, which could contract the market. While the virtual asset market is growing, business opportunities are constrained. The most prominent example is the virtual asset corporate investment market. Currently, only law enforcement, nonprofit organizations, and virtual asset exchanges are permitted to make corporate investments in virtual assets, and nonprofits and exchanges may open corporate accounts strictly for the purpose of cashing out assets.

According to the 'Roadmap for Corporates’ Participation in the Virtual Asset Market' released by the Financial Services Commission in February last year, trading of virtual assets by listed companies and registered professional investor corporations, excluding financial companies, was to be allowed from the second half of last year, with plans to eventually fully permit account openings for general corporations in the mid-to-long term. However, investments by listed companies and professional investor corporations—excluding financial institutions—that were supposed to begin last year have been delayed due to banks' suspension of real-name account issuance, compounded by the delay in enacting the Digital Assets Basic Act.

An industry representative stated, "As the legislation of the Digital Assets Basic Act has been delayed, it is not only impossible to pursue corporate investment but to even start new businesses," and emphasized, "A swift decision by the government and ruling party on the bill's specific issues is urgently needed, so we do not miss the golden opportunity for market expansion."

This content was produced with the assistance of AI translation services.