Woofun AI reports that South Korea’s Financial Services Commission (FSC) Chairman Lee Eog-weon and Financial Supervisory Service (FSS) Governor Lee Chan-jin convened with the Democratic Party to present the draft Basic Digital Asset Act, .

The high-level briefing occurred at the National Assembly Members’ Office Building at 2:00 a.m. UTC, marking a strategic pivot in the nation’s regulatory architecture. This session constitutes the second phase of digital asset governance, building upon the Virtual Asset User Protection Act implemented earlier this year, thereby expanding the legal scope beyond initial user safeguards.

A primary point of contention involves the structural requirements for won-based stablecoins, specifically whether issuance must be managed by a bank-led consortium. Proponents argue this model ensures financial stability and consumer protection, while critics warn it may stifle innovation and limit competition by forcing traditional banks to partner with issuers, creating significant barriers for smaller fintech firms.

Notably, the debate extends to exchange ownership restrictions, with proposals to impose caps on major shareholders’ stakes in cryptocurrency exchanges. While intended to mitigate market concentration and conflicts of interest, industry stakeholders fear these measures could deter investment and complicate governance structures, potentially destabilizing major trading platforms.

Per Woofun AI, legislative insiders from the National Policy Committee and the National Assembly’s Political Affairs Committee indicate that compromise proposals are emerging to resolve these disputes. The government draft is targeted for release by early August, a critical deadline necessary to secure passage within the current year.

Structurally, South Korea’s position as a leading jurisdiction means its regulatory decisions generate ripple effects globally, influencing standards for issuance, listing, and custody of digital assets. The Basic Digital Asset Act aims to provide comprehensive legal clarity for these activities, extending far beyond the initial user protection framework.

Market participants, investors, and regulators worldwide are closely monitoring these developments, as the outcome will define the operational landscape for Asia’s most dynamic crypto markets. This legislative push represents a decisive test of whether policy will foster or hinder innovation in the sector.