South Korea's Democratic Party plans dedicated digital-asset panel

  • Democratic Party lawmakers pledged to pass the Digital Asset Framework Act by year-end.
  • Min Byung-duk said substantive bill review will begin around November.
  • Speakers urged rules for digital-asset ETPs, on-chain vaults, and regulatory sandboxes.

South Korea's Democratic Party plans to establish a dedicated digital-asset panel within its Mega Ten innovation body as lawmakers seek year-end passage of the Digital Asset Framework Act. The panel is to take over work from the party's digital-asset task force and consider the framework bill, stablecoin rules and related policy issues. Democratic Party lawmaker Min Byung-duk said a public hearing could be held this month and substantive bill review would begin around November after the National Assembly's annual audit. Speakers at a Sept. 10 parliamentary seminar said regulatory uncertainty has left financial firms and digital-asset businesses without clear licensing standards, limiting domestic development of digital-asset ETPs and on-chain financial services. They urged a legal and operational foundation for spot digital-asset ETFs, followed by multi-asset and staking products, as well as regulatory sandboxes for testing new services including on-chain vaults. Separately, DAXA has called for delaying cryptocurrency taxation due to begin next year, raising the 2.5 million won annual deduction and allowing loss carryforwards of at least five years.

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