South Korea’s National Policy Committee has postponed deliberations on the “second-phase” cryptocurrency legislation until after the country’s June 3 local elections, adding to regulatory uncertainty for the digital asset sector. The committee removed the proposed Framework Act on Digital Assets from its latest meeting agenda, according to a report by Maeil Business Newspaper.
Debate Pushed Beyond June 3 Local Elections
The National Policy Committee, a standing body of the National Assembly that oversees key economic and financial policy, deferred discussion of the Framework Act on Digital Assets. The timing means any substantive debate is unlikely before the local elections, extending the policy limbo for exchanges, token projects, and service providers seeking clarity on licensing, market rules, and oversight.
What the Framework Act Would Cover
The Framework Act on Digital Assets is expected to establish comprehensive rules for Korea’s crypto market, including clearer definitions of digital assets, responsibilities for service providers, and guardrails for trading, issuance, and market conduct. The proposal is widely viewed as the second phase of Korea’s broader digital-asset regulatory roadmap, intended to move beyond investor protection toward a full market framework.
Context: Phase One Already in Force
South Korea has already implemented a first phase of crypto regulation focused on investor safeguards and market abuse penalties. That legislation, enacted in 2023 and in force since 2024, strengthened protections for users and increased liability for exchanges in cases of misconduct or security failures. The delayed Framework Act is seen as the follow-on measure to unify and expand rules across the digital-asset ecosystem.
What to Watch Next
With the Framework Act’s debate postponed, attention now turns to the post-election legislative calendar. Lawmakers will need to reschedule committee discussions, reconcile differing proposals, and determine implementation timelines. The outcome will shape how digital-asset businesses operate in one of Asia’s most active crypto markets.