South Korea Financial Committee to Finalize Virtual Asset Legislation Before September Parliamentary Session

Kim Byung-hwan, Chairman of South Korea's Financial Committee, announced plans to finalize the second phase of virtual asset legislation, referred to as the "Basic Act," ahead of the regular parliamentary session in September. During the Second Policy Committee meeting of the National Assembly, Kim responded to inquiries from Min Byung-deok, a Democratic Party lawmaker, regarding the submission timeline for the legislation. Kim assured that preparations would be completed to enable discussions during the parliamentary session.

On the 26th, Kim Byung-hwan, Chairman of the Financial Committee (left), responds to questions from lawmaker Min Byung-deok during the National Assembly Policy Committee meeting. [Photo: National Assembly Broadcasting System Capture]

The Basic Act is expected to establish formal regulations for the virtual asset industry, including measures for asset listings and broader industry governance. Kim highlighted that while the framework is largely agreed upon, additional coordination is required for provisions related to stablecoins. He also stated that the government's position would be aligned with the parliamentary discussion schedule.

The announcement follows the 2023 Virtual Asset User Protection Act, during which lawmakers had requested expedited development of the Basic Act. However, delays in submission have led to renewed scrutiny.

The committee also forwarded 141 related bills to a subcommittee for review, including amendments to the Capital Markets Act to permit Bitcoin spot ETFs and revisions to the Virtual Asset User Protection Act. After subcommittee evaluation, the bills will undergo further scrutiny in the full committee meeting, followed by review by the Judiciary and Legislation Committee. If approved, they will be presented to the National Assembly for final voting, government processing, and presidential proclamation.

South Korea has been increasingly active in regulating the crypto sector. Earlier this year, the country advanced its anti-money laundering measures for virtual assets and explored blockchain applications in public services. The Basic Act is expected to further solidify South Korea's stance as a leader in crypto regulation.