South Korea Speeds Up Digital Asset Framework Bill, but FSC Task Force Will Run Through 2028
Summary
- The government and ruling party said they will accelerate work in the second half on the Digital Asset Basic Act.
- The Financial Services Commission said it will operate a task force through 2028 for subordinate regulations and the build-out of digital asset infrastructure ahead of the law’s enactment and implementation.
- The market is focusing on the possibility that, even if legislation passes this year, there could still be a substantial lag before implementation of the system begins.
Forecast Trend Report by Period
South Korea’s government and ruling party have pledged to accelerate work in the second half of this year on the Digital Asset Basic Act, the second phase of the country’s virtual-asset legislation. But follow-up steps needed to put the framework in place are set to continue through 2028.
According to a 2026 regular National Assembly briefing that the Financial Services Commission submitted to parliament on September 3 ahead of the regular session later this month, the regulator plans to draw up the main elements of the Digital Asset Basic Act within this year. The proposal will be shaped through the Virtual Asset Committee and consultations between the government and the ruling party to create a regulatory framework covering the digital-asset industry, markets and users.
Even after the bill is drafted, implementation will take more time. In the briefing, the FSC said it will keep a task force in place through 2028 to prepare subordinate regulations for the law’s enactment and implementation, and to build infrastructure for the digital-asset ecosystem, including industry associations.
That means a sizable gap could emerge between drafting the bill this year and applying the rules in the market, even if the legislative process speeds through the National Assembly. After the law is enacted, authorities would still need to finalize detailed rules such as enforcement decrees and complete the market infrastructure required for implementation.
The timeline underscores a gap between the government’s push to pass the legislation within the year and the point at which the system is actually established. Regardless of when parliament handles the bill, financial authorities are preparing follow-up work for implementation with 2028 in view.
The FSC also cited limits in the current virtual-asset regulatory framework as a reason for pursuing the basic law. So far, South Korea’s system has prioritized curbing illegal activity and preventing harm to users. As a result, oversight of business conduct, disclosure and distribution, as well as regulation of the broader industry and market, has been relatively lacking.
The regulator plans to move beyond the current user-protection focus and build an integrated digital-asset legal framework covering businesses, markets and users. It said the detailed design of the system will proceed through consultations with relevant agencies and input from experts.
The FSC also said South Korea’s fintech industry lags global peers in competitiveness. Citing data from the Ministry of SMEs and Startups, it said that as of December last year, only three South Korean companies — Dunamu, Bithumb and Toss — were among the world’s 246 fintech unicorns with valuations of more than $1 billion.
Even if the main provisions of the Digital Asset Basic Act are completed this year, more time will be needed before the law is enacted, subordinate rules are finished and market infrastructure is fully built. With the FSC setting 2028 as the end date for the task force, market attention is likely to shift beyond whether the bill passes this year to when the framework will actually take effect.
