The Korea Digital Asset Business Association (KDA) has issued a strong call for the National Assembly to pass the Digital Asset Basic Act within this year, citing growing risks to investor protection and industrial competitiveness due to the current regulatory vacuum.
In a public statement released on June 13, KDA emphasized, “The Digital Asset Basic Act must be enacted before the end of 2025 to formally incorporate the digital asset market into the institutional framework and foster sustainable growth.” The group warned that continued delays would significantly hinder Korea’s ability to compete globally in blockchain and digital finance.
KDA pointed to the fact that daily trading volume in Korea’s digital asset market now exceeds that of the combined KOSPI and KOSDAQ stock markets, yet there is still no comprehensive legal foundation to support the market. A recent survey conducted by the Korea Chamber of Commerce and Industry also revealed that 57.9% of respondents would consider expanding their investment in digital assets if proper legal protections were in place.
The proposed legislation covers a wide range of digital asset categories, including stablecoins, utility tokens, NFTs, decentralized finance (DeFi), and decentralized autonomous organizations (DAOs). It outlines clear rules for token issuance, circulation, disclosures, listings, and asset management. The draft also includes provisions for authorizing won-based stablecoins and establishing a presidential-level Digital Asset Committee to oversee development and regulation.
Highlighting the global landscape, KDA noted that the EU, Singapore, Japan, Hong Kong, and the UK have already passed digital asset legislation, positioning themselves as leaders in the global race to become digital asset hubs. “Korea risks falling behind despite its technological strengths if it continues to stall on regulatory clarity,” the statement warned.
KDA further urged bipartisan cooperation in the legislature, reminding lawmakers that both ruling and opposition parties had pledged to pass digital asset legislation during past election campaigns. The association is also preparing to submit follow-up recommendations to the Assembly, including clarifications for accounting and auditing standards for stablecoins, detailed regulatory language for NFTs and DeFi, and terminology revisions.
Although the bill has entered preliminary discussions in the National Assembly’s Political Affairs Committee, KDA voiced concern over possible legislative delays due to unrelated political issues.
“This legislation is not merely about regulation,” the statement concluded. “It is about building the legal infrastructure that will allow Korea to lead in the global digital asset economy. We cannot afford to wait any longer.”
