Reasons Behind the Delay
South Korea's Phase Two Virtual Asset Law has been delayed due to disagreements over key provisions. The proposed legislation aims to bring comprehensive oversight to digital assets, including stablecoins.
The main disputes center around who should be allowed to issue won-backed stablecoins—banks or licensed companies—and whether to relax the separation between financial services and crypto operations to promote innovation.
Shareholding Caps Under Fire
Additionally, the proposal to cap major shareholders' stakes in exchanges at between 15% and 20% has drawn criticism, with concerns that the restrictions are too rigid and could hinder market dynamics.
Broader Impacts
As a result of the legislative delay, discussions around spot virtual asset ETFs and the participation of listed companies in crypto trading have also been put on hold. Negotiations are ongoing between government bodies, industry players, and political groups in hopes of reaching a compromise.