South Korea's Digital Asset Basic Law to Be Finalized in Early January Next Year, Establishing a Digital Asset Committee

The Digital Asset Basic Law in South Korea is set to be finalized in early January next year, aiming to establish a domestic regulatory framework for digital assets before the implementation of the U.S. stablecoin regulations on January 18. Core issues of the bill are expected to be discussed intensively starting next week, with industry and expert participation required over the next two months. Regarding the issuance of the Korean won stablecoin, there is opposition to the condition of holding 50% plus one share in banks as a requirement for issuance. Instead, a regulatory model centered on actual actions and security requirements is advocated, demanding that issuers meet requirements such as 100% reserve assets, instant redemption, anti-money laundering (AML), and know your customer (KYC) protocols. Additionally, it is proposed to postpone the taxation of digital assets until 2029 and allow investment losses to be carried forward to offset profits in the next three years. A presidentially appointed Digital Asset Committee will also be established to coordinate digital asset industry policies.