Rep. Min: Digital asset basic law certain to pass this year

The Democratic Party of Korea said it will hold a public hearing on the digital asset basic law this month. It plans to begin full-fledged deliberations on the bill in November, after the National Assembly's national audit.

Rep. Min Byung-deok of the Democratic Party spoke Thursday at a seminar titled "Digital Asset Financial Innovation Cases and Response Strategies" at Post Tower in Yeouido, Seoul. He said, "I can say for certain that the basic law will inevitably be enacted within this year." He added, "We will hold a public hearing sometime this month."

Min said, "Once the national audit ends, I expect very serious deliberations on the bill to begin around November." He stressed, "Think of November or early January as the point when one stage toward enacting the bill is marked, and a conclusion will be reached before then."

Industry observers, however, say the regular National Assembly session's schedule — including the national audit and budget review — could push things back. The bill's enactment, they say, may slip to the first half of next year. Guidelines on digital asset investment for listed companies have also been drawn up, but prospects for their implementation within this year are dimming. That is fueling management uncertainty for virtual asset service providers, or VASPs.

An industry official said, "Unlike financial firms that treat digital assets as just one new business line among hundreds of operations, digital assets are the core business for VASP operators." The official added, "If the regulatory regime is delayed, it ultimately becomes a matter of survival."

The ruling party will continue discussions on digital assets within the MEGA 10 special committee it launched alongside its new leadership. The Democratic Party had formed the 10-body MEGA 10 committee for party reform last month, following the inauguration of party leader Kim Min-seok. The sixth of the 10 bodies is the AI-driven Financial, Stock Market and Economic Regime Improvement Task Force.

Former Rep. Lee Yong-woo, who once served as Kakao Bank's chief executive, heads the task force, while Rep. Park Min-kyu serves as its secretary. Industry watchers expect that if a digital asset subcommittee is created within the task force, it would take over discussions from the Democratic Party's existing digital asset task force.