South Korean regulators have encountered further difficulties in digital asset legislation. The "Basic Law for Digital Assets" (the second phase of the Virtual Asset Bill), originally scheduled for submission at the start of the new year, has been postponed to next year due to disagreements among various departments.

According to Yonhap News Agency on December 30, the new legislation led by the Korea Financial Services Commission (FSC) now has a more comprehensive framework—focusing on strengthening investor protection. It introduces new provisions such as no-fault compensation and imposes stricter requirements on digital asset operators: they must adhere to standards similar to those in the financial industry, including clear explanations and full disclosure of terms. In cases of losses caused by hacking attacks or system failures, operators are required to bear strict compensation responsibilities, with little room for negotiation.

Regulation of stablecoins is particularly stringent. The new rules mandate that stablecoin issuers must hold their reserve assets in low-risk products—such as deposits and government bonds—and must fully back the issuance amount, entrusted to banks or other reputable institutions for safekeeping. The logic is clear: to eliminate the possibility of issuer bankruptcy risks being transferred to investors from the source.

The bill also aims to address an old issue—many projects bypass domestic approval procedures to conduct fundraising and sales. The new regulations permit the sale of digital assets within South Korea, but only if full transparency of information is maintained; attempts to evade disclosure will no longer be tolerated.

Where are the disagreements? The main points of contention between the Bank of Korea and the Financial Services Commission are twofold. First, whether a new "Consensus Institution" should be established specifically to approve stablecoin issuance—this involves the division of authority. Second, the minimum capital requirements for issuers vary greatly, with discussions ranging from 500 million KRW to 25 billion KRW, indicating significant differences in their approaches.

Currently, the broad framework of regulation is largely set, but the specifics of implementation will depend on ongoing negotiations among the government, the central bank, and legislative bodies. How strict the final bill will be and what it will look like remains uncertain.