South Korea's Virtual Asset Law Faces Delays Amid Controversy

South Korea's progress on the second phase of its Virtual Asset Law has been delayed due to disputes over key provisions. According to PANews, the legislation aims to comprehensively regulate digital assets, including stablecoins. The main points of contention involve the eligibility of issuers for Korean won stablecoins, debating whether banks or authorized enterprises should lead, and whether to relax the separation of financial and virtual asset businesses to foster innovation. Additionally, the proposal to cap major shareholders' stakes in exchanges at 15%-20% has been criticized as overly restrictive. The legislative delay has also stalled discussions on related topics, such as spot virtual asset ETFs and the involvement of listed companies in virtual asset trading. Negotiations continue among government agencies, industry participants, and political groups.