South Korea audit may pass without major crypto issues, basic law still a wildcard

South Korea’s annual parliamentary audit is expected to pass without any major virtual-asset issues as weak market conditions have reduced public and political attention, Bizwatch reported. According to the outlet, citing the virtual-asset industry and political circles on Sept. 10, there have so far been few moves by National Policy Committee and other National Assembly standing committees to review crypto-related issues or request materials on specific matters. With the market underperforming this year, public interest has cooled and political circles are not placing much weight on the sector. A basic law on digital assets could still emerge as a wildcard during the audit, however. Legislation is scheduled for later this month, and the parliamentary audit is set to begin in early October, meaning the submission of a government bill and the details of the legislation could become points of contention. The National Assembly’s Political Affairs Committee is currently waiting for the government’s draft bill, and if South Korea’s Financial Services Commission does not submit it promptly, lawmakers plan to introduce a basic law through member-sponsored legislation. In political circles, committee chair Yoo Dong-soo is already said to have set a public hearing date for late September and is accelerating the legislative process. A National Assembly official said witness lists for the audit are set to be compiled for the first time next week, adding there appears to be no special issue in the virtual-asset sector so far. The official added the ruling Democratic Party plans to push ahead with the Digital Asset Basic Act this month, and if the government draft is still not submitted before the audit or if it spells out details such as ownership dispersion, the issue could surface during the audit.