South Korea's ruling party and government held a policy meeting on the 20th where Financial Services Commission (FSC) Chairman Lee Eok-won and National Policy Committee members discussed the urgent need for Digital Asset Basic Act legislation. Rep. Park Sang-hyuk, the ruling party whip on the National Policy Committee, stated after the meeting that there was general consensus on preparing legislation quickly and that further discussions would follow. The meeting comes after a previous legislative push in March was indefinitely postponed due to the Middle East crisis, with the issue returning to the agenda amid ongoing global regulatory developments including the US GENIUS Act for stablecoin regulation.
Ruling Party and Government Reach Consensus on Digital Asset Basic Act Urgency
Rep. Park Sang-hyuk told reporters after the policy meeting that "there was a general statement that we should quickly prepare legislatively" regarding the Digital Asset Basic Act, adding that participants agreed to continue discussions. He noted that multiple lawmakers have already proposed bills and referenced the US GENIUS Act (stablecoin regulation law) as context, explaining that "market forecasts regarding its effects differ."
The policy meeting was attended by FSC Chairman Lee Eok-won and other FSC officials, along with National Policy Committee Chairman Yoo Dong-soo, Rep. Park Sang-hyuk, and other committee members. The meeting format included discussions of legislative tasks and major issues for the second half of the year, with the FSC reporting on legislative priorities.
The ruling party and government had previously attempted to propose the Digital Asset Basic Act after a March consultation meeting, but discussions were indefinitely postponed citing the Middle East crisis. The issue subsequently lost priority due to local election schedules before being raised again at this policy meeting.
Lawmakers Request Enhanced Monitoring of Leverage ETF Market
Leverage exchange-traded funds (ETFs) were also discussed at the meeting. Rep. Park stated that "there was a report on the content announced on the 16th (supplementary measures)" regarding leverage ETFs, and that lawmakers "requested overall monitoring and situation assessment of market conditions." He added that lawmakers "also requested additional measures be devised" and asked that "the National Policy Committee be closely communicated with when preparing additional measures."
Financial authorities announced supplementary measures for single-stock leverage ETFs on the 16th, including prohibiting new listings and raising deposit requirements.
Bank Governance Improvement Measures Also Discussed
Regarding bank governance structure improvements, Rep. Park explained that lawmakers "requested the financial authorities prepare improvement measures so that the process proceeds transparently."
FAQ
What did South Korea's ruling party and government discuss on the 20th regarding digital assets?
The ruling party and government held a policy meeting on the 20th where they reached consensus on the need to quickly prepare legislation for the Digital Asset Basic Act. Rep. Park Sang-hyuk stated after the meeting that there was general agreement on swift legislative preparation and that further discussions would follow.
Why was the Digital Asset Basic Act proposal postponed earlier this year?
The ruling party and government had planned to propose the Digital Asset Basic Act after a March consultation meeting, but discussions were indefinitely postponed citing the Middle East crisis. The issue subsequently lost priority due to local election schedules before being raised again at the policy meeting on the 20th.
What measures did financial authorities announce regarding leverage ETFs?
Financial authorities announced supplementary measures for single-stock leverage ETFs on the 16th, including prohibiting new listings and raising deposit requirements. At the policy meeting on the 20th, lawmakers requested overall market monitoring and additional measures with close communication to the National Policy Committee.
