South Korea postpones the passage of the second phase of the "Virtual Asset Law" due to disputes over terms such as stablecoins

According to market news, the legislative process for South Korea's second phase of the "Virtual Asset Act" has been delayed due to disputes over key provisions. The bill aims to comprehensively regulate digital assets, including stablecoins. The main points of contention focus on two aspects: first, the qualification of the issuing entities for Korean won stablecoins, specifically whether it should be led by banks or authorized enterprises; second, whether to relax the business separation restrictions between finance and virtual assets to encourage innovation.

In addition, the bill proposes to set a cap of 15% - 20% on the shareholding of major shareholders in exchanges, which critics argue is too restrictive. Due to the legislative delay, discussions related to spot virtual asset ETFs and the advancement of topics such as listed companies engaging in virtual asset transactions have also been put on hold. Currently, negotiations are still ongoing among government agencies, industry participants, and political groups.