South Korea's Digital Asset Basic Law Faces Risk of Delay Amid Government Focus on Stock Market

On June 24, the Korea Economic Daily reported that South Korea's Digital Asset Basic Law, which is part of the second phase of virtual asset legislation, may face delays this year. Although the National Assembly's digital asset working group has completed the consolidation of eight related bills, the group has stalled following recent changes in the parliamentary leadership. The relevant standing committee, the National Policy Committee, has yet to be formed, and there are further obstacles to the overall legislative schedule. Additionally, the government, including financial authorities, has not submitted its own version of the bill. The media added that some market observers believe this delay is related to the recent surge in the stock market, with the Korea Composite Stock Price Index (KOSPI) surpassing the 9,000-point mark. This perspective suggests that financial authorities are intentionally slowing down the legislative process to prevent capital from flowing into the virtual asset market while the government focuses on boosting the stock market.