South Korea has delayed the passage of its second-phase virtual asset law, which aims to regulate digital assets including stablecoins, amid disagreements over exchange ownership caps and stablecoin issuance.

The legislation, submitted by the Financial Services Commission to the National Assembly, was scheduled for review this month but has been postponed due to ongoing disputes among government agencies, industry stakeholders, and political groups.

Key issues include whether stablecoins pegged to the won should be issued mainly by banks or authorized businesses, and whether to relax restrictions on the separation between finance and virtual assets to foster innovation.

Critics argue that proposed limits on exchange shareholders’ stakes, set at 15%–20%, are too restrictive.

The delay has stalled discussions on exchange-traded funds (ETFs) and virtual asset transactions by listed companies, which depend on the law’s implementation.

🔗 Source: Chosunbiz