South Korea's Digital Asset Act stalls amid focus on stock market

The passage of South Korea's Digital Asset Basic Act, the second phase of the country's virtual asset legislation, is at risk of being shelved for the year, Daehan Gyeongje reported. Although the National Assembly's Digital Asset Task Force has completed its work integrating eight related bills, it has become inactive following a recent change in parliamentary leadership. The relevant standing committee, the National Policy Committee, has not yet been formed, and the overall legislative schedule presents further obstacles. Additionally, the government, including financial authorities, has yet to propose its own version of the bill. The outlet added that some market observers believe the delay is linked to the recent surge in the stock market, with the KOSPI surpassing the 9,000-point mark. This view suggests that financial authorities are intentionally slowing the legislative process to prevent capital from shifting to the virtual asset market while the government focuses on boosting the stock market.