South Korea’s Financial Services Commission is aiming to complete the main provisions of the Digital Asset Basic Act within this year, as the government and ruling party push to advance the second phase of the country’s virtual-asset legislation in the second half.
But the regulator has also made clear that passing the bill would not mean immediate implementation. The FSC said a dedicated task force will remain in place through 2028 to prepare subordinate rules for enactment and enforcement and to build the market infrastructure needed for the framework to operate.
A faster push on the bill, but a slower path to enforcement
The government and ruling party have pledged to speed up work on the Digital Asset Basic Act, which is intended to form the next stage of South Korea’s virtual-asset regulatory system. According to the FSC, the main contents of the bill are to be finalized this year through the Virtual Asset Committee and consultations between the government and the ruling party.
Even if that drafting timetable is met and the legislation moves quickly through the National Assembly, the practical rollout is expected to take much longer. The FSC’s schedule suggests a meaningful gap could remain between parliamentary progress and the point when the rules are actually applied across the market.
Why the task force will stay in place until 2028
The FSC said the task force will continue operating through 2028 to handle follow-up work tied to the law’s enactment and enforcement. That includes drafting subordinate regulations such as enforcement decrees, as well as developing digital-asset ecosystem infrastructure.
The regulator specifically pointed to infrastructure needs that include industry associations. In other words, the authorities are treating the basic law not just as a legislative project, but as a broader institutional buildout that will continue after the bill itself is prepared.
What the new framework is meant to cover
The FSC said the current virtual-asset framework has been limited in scope, focusing mainly on preventing illegal activity and protecting users. In its view, that has left broader supervision of the industry and trading environment relatively underdeveloped.
Areas the regulator identified as needing fuller oversight include business conduct, disclosure and distribution. The planned basic law is intended to move beyond a user-protection-centered approach and establish an integrated legal framework covering service providers, markets and users.
The detailed shape of that system has not yet been settled. The FSC said specifics will be worked out through consultations with related agencies and input from experts.
Competitiveness concerns and the next confirmed milestone
In the same report, the FSC argued that South Korea’s fintech sector remains relatively weak in global competitiveness. Citing Ministry of SMEs and Startups data, it said that as of December last year only three South Korean companies — Dunamu, Bithumb and Toss — were included among 246 global fintech unicorns valued at more than $1 billion.
For now, the clearest confirmed milestone is the FSC’s goal of finishing the main provisions of the Digital Asset Basic Act this year. After that, the focus is likely to shift to the longer implementation phase, as authorities work on subordinate rules and infrastructure with the related task force scheduled to run until 2028.
Source: en.bloomingbit.io