South Korea plans to propose a draft digital asset law this month, with a proposed cap on single shareholder ownership of crypto trading platforms set at 15% to 20%.

November 8 - According to South Korean media EToday, the South Korean Financial Services Commission is coordinating inter-departmental differences on the government draft of the "Basic Act on Digital Assets," aiming to propose it within November and expects to advance it in the form of legislator-initiated legislation. Regulatory authorities are discussing setting a single shareholder ownership cap of 15% to 20% for crypto trading platforms, with a 1 to 2-year transition period for existing trading platforms. Considering property rights disputes, an alternative proposal that only restricts voting rights may also be put forward.

The bill plans to change trading platform market entry from a reporting system to a licensing system, and stablecoin issuers are expected to adopt a bank-centered consortium format. In addition, regulatory authorities are discussing the implementation of no-fault liability for compensation in cases of hacker attacks and system accidents, and listing violations of the obligation to actually hold crypto assets as grounds for suspension of business.

The delay in crypto asset taxation has driven legislative discussion. South Korean Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il stated on November 5 that he will consult with the National Assembly to advance a two-year postponement of the crypto asset income tax originally scheduled to be implemented next year. The ruling party advocates prioritizing the enactment of the "Basic Act on Digital Assets," establishing an overall regulatory framework, and leaving an adaptation period for enterprises and investors.