South Korea’s Financial Services Commission has resumed work on the second phase of its virtual-asset legislation, the Digital Asset Basic Act, and is coordinating privately with ruling party lawmakers to improve the bill’s path through the National Assembly. Discussions held in late July with Yoo Dong-soo, chair of the National Assembly’s Political Affairs Committee, and ruling party floor member Park Sang-hyuk focused on advancing the measure, which is expected to be introduced as a member-sponsored bill under Yoo’s name. The renewed push builds on South Korea’s first-phase framework, the Virtual Asset User Protection Act, which took effect in July 2024 and requires virtual-asset service providers to separate customer deposits and maintain protections against hacking and system failures under supervision by the FSC and the Bank of Korea. The second-stage bill is intended to go further by setting rules for token listings, issuance and broader market practices, including areas such as stablecoins, disclosure and the legal status of digital assets. The bill remains politically and technically complex. Participants in the private talks judged that prior coordination within the ruling party would be necessary to reduce friction at the subcommittee stage because key issues remain contested among stakeholders. Earlier reports said the government and ruling party were targeting a September filing, while disputes over stablecoin issuance, ownership limits for controlling shareholders of virtual-asset service providers and the broader scope of oversight could still affect timing and review.