Overview of the Digital Asset Framework Act
The Financial Services Commission (FSC) of South Korea has announced that a subcommittee review of the Digital Asset Framework Act is scheduled for November, countering allegations of delays in the legislation concerning the country’s crypto sector.
FSC’s Commitment to Legislation
Seo Na-yoon, who heads the FSC’s division focused on virtual assets, emphasized that both the regulatory authority and lawmakers are aligned in their efforts to create a robust legal framework for digital assets, including stablecoins. During a recent seminar at the National Assembly held on September 22, Seo acknowledged some ongoing discrepancies regarding the timeline for the government’s draft proposal but assured that the planned review in November is on track.
“The FSC is not dragging its feet at all. We share the same view,”
addressing feedback about the legislative timeline. She expressed urgency in passing the legislation and stated that discussions would build on existing bills already proposed by lawmakers.
Current Legislative Landscape
Presently, there are ten bills concerning digital assets and stablecoins awaiting consideration in the National Assembly, which can help expedite the legislative process before the government presents its finalized version. Seo reassured that any administrative changes within the FSC would not disrupt the established schedule, reiterating that a personnel transition cannot cause any delays in progress.
The FSC had previously conveyed to the National Assembly their intent to collaborate with the ruling Democratic Party to formulate a consolidated legislative approach that incorporates the already proposed ten initiatives. One notable proposal was introduced by Rep. Min Byung-duk in June 2025, with several additional proposals subsequently presented by both Democratic and People Power Party members.
Future Legislative Goals
In a recent interaction with media, Min indicated that a public hearing concerning the Digital Asset Framework Act is anticipated by the end of September. Currently, the regulation for South Korea’s digital asset sector is guided by the Virtual Asset User Protection Act, which focuses on safeguarding users and curtailing unfair trading practices.
The forthcoming second phase of legislation is expected to delve into critical issues such as asset issuance, mandatory disclosures, and stablecoin regulation. A significant point of discussion surrounds the eligibility criteria for stablecoin issuers, with the Bank of Korea advocating for a bank-led framework to mitigate potential impacts on monetary stability and payment systems.
Integration of Digital Asset Regulation
The central bank reiterated its position on maintaining a bank-centered model for the issuance of won-backed stablecoins, particularly through consortiums. Looking ahead, South Korea’s government has integrated digital asset regulation into its policy goals for the latter half of 2026, which includes plans for stablecoin legislation, crypto ETFs, tokenized government bonds, and establishing a legal structure for cross-border stablecoin transactions.
The FSC also noted during this year’s presidential briefing that the aim is to finalize the second stage of stablecoin legislation by 2026. Moreover, the discourse surrounding U.S. regulation revitalized focus during the September seminar, with Min highlighting that developments pertaining to the CLARITY Act and the GENIUS Act offer South Korea an opportunity to finalize its regulatory approach.
Importance of Timely Legislation
While the Senate recently failed to advance the CLARITY Act, the GENIUS Act aims to set a federal framework for payment stablecoins, effective from January 18, 2027, and has already seen around 200 stablecoin projects in preparation in the U.S. Min asserted that timely legislation in South Korea is vital to prevent domestic stakeholders from falling behind while waiting for regulated products.
In the U.S., delays have also been reported; the GENIUS Act was signed in 2025 but has yet to see all required regulations finalized, despite a 2026 deadline for implementation. At the seminar in Seoul, industry experts, including MRI CEO Kim Jong-seung and legal consultant Han Seo-hee, discussed implications of U.S. crypto fundraising policies on the local market, further underlining the importance of establishing a coherent legislative framework for South Korea’s digital asset industry.
