Ruling Party Digital Asset TF Nears Final Stage of Virtual Asset Unified Bill...Aiming to Introduce It Next Month

Meeting of Lawmakers and Advisory Group on Digital Asset Legislative Bill Held on the Afternoon of the 24th

The Digital Asset Task Force (TF) of the Democratic Party of Korea, which is preparing the Basic Act on Digital Assets, has entered the final stage of discussions. After collecting opinions from advisory committee members, the TF plans to include key contentious issues in the bill, such as restrictions on the equity holdings of major shareholders of exchanges and the 50%+1 share rule for banks.

TF Chair Lee Jeongmun and TF member Ahn Dogeol held a meeting of TF members and the advisory group on the digital asset legislative bill at the National Assembly in Yeouido, Seoul, on the afternoon of the 24th, and then announced these points to reporters.

Ahn said, "Based on the content of today's meeting, the TF will take the lead over the next week in working out a compromise that the industry and financial authorities can mutually agree on," adding, "There is a possibility that the TF proposal will move in the direction of encompassing both the industry’s position and that of the authorities."

He went on to stress, "There were many comments that, while it is important to create a perfect system, timing is also critical," and added, "Following this compromise, additional second- and third-stage legislation will inevitably continue."

Chair Lee also said, "There were various suggestions from advisory committee members regarding the 50%+1 share rule and the restrictions on the equity holdings of major shareholders of exchanges," and added, "If, next week or the week after, we are able to arrange a communication channel with the government and the Financial Services Commission to discuss the compromise and reach mutual agreement, we will introduce the ruling party’s bill."

The integrated bill under discussion by the Digital Asset TF aims to bring virtual assets into the institutional framework. In this process, issues have emerged such as limiting the equity holdings of major shareholders of virtual asset exchanges and restricting the issuers of stablecoins to bank-centered consortia.

Chair Lee said, "The (Democratic Party) Policy Committee is in a position to coordinate government policy to some extent, so it can remain neutral or accept the government’s proposal," but added, "However, nothing has been finalized yet. We will discuss the compromise proposal with the Financial Services Commission and the Policy Committee to determine the best possible plan."

On this day, TF lawmakers reached a consensus on submitting the bill as soon as possible. The sponsor of the bill is expected to be either the TF itself or the party’s Policy Committee.

Ahn emphasized, "What matters is not who introduces the bill, but reaching agreement on the opinions and incorporating them into a single unified proposal." The TF is expected to整理 the points discussed so far and, around next week, arrange an additional meeting to communicate with the government and the Financial Services Commission.