FSC: "Digital Asset Basic Act to Be Discussed at Subcommittee in November"

"Government Proposal Already Submitted... Will Pass Quickly"
"Concerns That U.S. Coin Issuance Rules May Drive Korean Companies Abroad"

The Digital Asset Basic Act (the second phase of virtual asset legislation), which comprehensively regulates the issuance, distribution, disclosure, and business operator requirements for virtual assets, is scheduled to be discussed at the National Assembly's legislative subcommittee in November 2026.

On the 22nd, participants are taking a commemorative photo at the seminar titled 'U.S. Cryptocurrency Financing Policy and South Korea's Digital Asset Legislative Challenges,' held at the National Assembly in Yeouido, Seoul. Photo by Seungwook Park

"Digital Asset Basic Act to Be Discussed at Legislative Subcommittee in November"

Seo Nayoon, Director of the Virtual Asset Division at the Financial Services Commission, stated at the seminar titled 'U.S. Cryptocurrency Fundraising Policy and Legislative Challenges for Digital Assets in Korea' held at the National Assembly in Yeouido, Seoul, on September 22, 2026, "The overall direction has already been set. While some detailed discussions may still be necessary, there is absolutely no intention to delay the process; in fact, we want to pass the bill as quickly as possible." Seo added, "There may be some detailed scheduling issues related to the submission of the government's proposal, but I share the view that we must discuss the matter at the legislative subcommittee in November."

Director Seo repeatedly emphasized that there will be no delays in the schedule. She said, "Since a draft of the Digital Asset Basic Act has already been proposed, I expect it will be reviewed in parallel. This law covers every aspect of the market, such as issuance and distribution, and we are working in close alignment with the lawmakers. I will do my utmost to support everything possible to ensure discussions proceed according to schedule," she emphasized.

Director Seo's comments came as concerns about potential delays in the legislative process for the Digital Asset Basic Act were raised again. Assemblyman Min Byung-duk of the Democratic Party of Korea said, "We promised to handle this within this year, with the audit in October and debates in November, but now there's talk that public hearings are difficult to hold due to the absence of the policy chief." The public hearing on the Digital Asset Basic Act was initially scheduled for September 30, 2026, but there is now a chance it could be delayed.

On the 22nd, at the National Assembly in Yeouido, Seoul, during the seminar titled 'U.S. Cryptocurrency Funding Policies and Legislative Tasks for Digital Assets in Korea,' Min Byungduck, a member of the Democratic Party of Korea, is speaking. Photo by Park Seungwook

Assemblyman Min stressed the importance of speed over perfection in the legislative process. "At this point, speed is more important than earning a perfect score. We have to move faster—otherwise, in the tsunami of (U.S. dollar-based) stablecoins, even our small boat may not survive," he said. "A Korean won-based stablecoin is the solution, and to achieve this, we must institutionalize the Digital Asset Basic Act as soon as possible," he argued.

"Growing Need for Virtual Asset Reshoring in Korea"

The seminar also raised the need for regulations governing the issuance of non-security virtual assets, such as Bitcoin and Ethereum. Kim Jongseung, CEO of MRI, stated, "Due to U.S. policy trends, the necessity for virtual asset reshoring is growing in Korea. We must be well prepared to establish and verify the funding routes, distribution methods, and procedures for virtual assets."

Last month, the United States announced new rules regulating the issuance of non-security virtual assets, called Regulation Crypto Assets. This regulation sets out funding routes for early-stage startups with a limit of 5 million dollars and up to 75 million dollars for companies, governing how companies can issue virtual assets. It also includes provisions such as safe harbor measures, which exclude virtual asset issuance from being considered investment contract securities.

On the 22nd, at the National Assembly in Yeouido, Seoul, a seminar titled 'US Cryptocurrency Funding Policy and Korea's Digital Asset Legislative Issues' was held, where Professor Yoo-shin Jung from Sogang University's School of Business Administration spoke. Photo by Seunguk Park

Through these rules, the United States aims to boost the domestic issuance of virtual assets and encourage investors to invest within the U.S. These changes have led to the assessment that Korean companies now have more incentives to issue virtual assets within the United States.

CEO Kim added, "If Korean companies choose to issue virtual assets in the U.S., their business management functions and decision-making regarding fundraising would have to move to the U.S. This would result in business operations becoming U.S.-centered, which would inevitably have impacts on Korea in terms of job creation, tax revenue, and other factors."

Attorney Han Seohee of the law firm Kwangjang also pointed out, "Korea must prepare for foreign onshoring strategies. If domestic companies expand locally overseas, they will incur significant costs related to local tax and accounting rules. However, if issuance is possible within Korea, we can promote the growth of our industries and reduce such costs," she said.

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