South Korea says Digital Asset Basic Act draft is complete and aims for passage this year

South Korea is advancing digital-asset legislation on two tracks while outside policy groups push a more gradual approach to stablecoin oversight. The Financial Services Commission says the broader Digital Asset Framework Act, also referred to by officials as the Digital Asset Basic Act, is largely complete in draft form, with only some issues still under coordination, and plans to speed legislation once the National Assembly’s second-half agenda is set. The bill is intended to create South Korea’s first comprehensive digital-asset framework, covering stablecoins, issuance, disclosures and market rules. A policy report published Wednesday by Hashed Open Research and the Solana Policy Institute, summarizing a June 23 symposium attended by lawmakers, legal experts and industry participants, recommended interim licensing guidance, greater flexibility for stablecoin issuers and a phased rollout of stablecoin rules before the full act is finalized. Democratic Party lawmaker Ahn Dogeol said policymakers were considering a compromise under which banks would retain majority ownership while fintech and non-bank firms managed operations. Kim Hyobong, a partner at Bae, Kim & Lee, said South Korea should clarify which crypto activities financial institutions may conduct, resolve licensing uncertainty for stablecoin payments, set rules for foreign-issued stablecoins and follow the European Union’s phased implementation of the Markets in Crypto-Assets Regulation by advancing stablecoin issuance rules ahead of the broader law. Lawmakers are also considering whether the framework should include legal grounds for AI Agent payments. Issues under review include know-your-customer requirements, liability allocation, foreign-exchange reporting for cross-border transactions and standards for programmable payments. Separately, a July 28 amendment proposed by 15 ruling People Power Party lawmakers, including Kim Sang-hoon, would let the Financial Intelligence Unit request payment suspensions on bank and crypto accounts suspected of being used to transfer illegal assets. The measure would allow freezes of up to 30 days, extendable once to 60 days total, and would impose administrative fines of up to 100 million won ($72,000) for immediate noncompliance if enacted.