The final draft of the Digital Asset Basic Act (Virtual Asset Phase 2 bill), whose introduction had been delayed due to differences over the issuer of a won-denominated stablecoin and limits on major shareholder stakes in virtual asset exchanges, is expected to be finalized on the 5th after a party-government consultation.

On the 4th, the Financial Services Commission held the first meeting of the year of the Virtual Asset Committee, chaired by Vice Chairman Kwon Dae-Young, and discussed key elements of the government review draft of the Digital Asset Basic Act.

Items on the agenda included the core points of contention: bank-centered (50%+1 share) issuance of stablecoins and criteria for ownership dispersion at virtual asset exchanges. This was the final round of gathering opinions before finalizing the government proposal.

The Financial Services Commission and the Democratic Party of Korea will hold a party-government consultation at the National Assembly on the morning of the 5th to discuss the bill to enact the Digital Asset Basic Act. It will be a venue for the government and the ruling party to make final adjustments on the contested points of the bill. After producing the final draft, they plan to introduce the bill within this month.

The most significant issue is the cap on the voting-rights stake of major shareholders in virtual asset exchanges. Discussions may include raising the cap somewhat above the current working proposal (15% to 20%) or deferring the effective date.

The government has pursued limits on major shareholder stakes to strengthen accountability of virtual asset businesses and protect consumers, but there have also been voices within the ruling party expressing concern that the industry could be stifled.

Meanwhile, the Virtual Asset Committee reviewed developments to date and future response measures regarding the erroneous Bitcoin payout incident at Bithumb. The Financial Supervisory Service is currently conducting an inspection of Bithumb.

They agreed to use the emergency response team formed by the Financial Services Commission, the Financial Intelligence Unit (FIU), the Financial Supervisory Service, and the exchange consultative body (DAXA) to encourage sufficient compensation for users, and that exchange internal controls and risk management systems should first be improved through self-regulation.

Fundamentally, there were also calls to secure institutional effectiveness through enactment of the Digital Asset Basic Act. The Financial Services Commission plans to promote the introduction of safeguards such as exchange internal-control standards and no-fault liability for damages.