The Democratic Party of South Korea has introduced a proposed 'Digital Asset Basic Act' that aims to establish a robust legal framework for digital assets. This includes regulations for issuance, trading, custody, and supervision of digital assets. The proposal recognizes the growing importance of digital assets in connecting the real economy and financial markets, and seeks to provide a clear and comprehensive framework for their governance.
The proposed legislation defines value-linked digital assets, such as stablecoins, as requiring issuer authorization, refund reserves, and redemption obligations. The bill also proposes the creation of a digital asset committee to oversee policy and coordinate national plans for the sector. Furthermore, it introduces licensing, registration, and reporting requirements for digital asset businesses, and establishes rules on disclosures, internal controls, and market conduct. The proposal is part of South Korea's efforts to lead the global digital financial order, and to address the current lack of a comprehensive framework for digital assets in the country.