Virtual Asset Framework Act — September Parliamentary 'Golden Time', Will It Pass This Time?

Discussions on the Virtual Asset Framework Act, which will establish the regulatory backbone for the domestic digital asset market, will begin in earnest at the upcoming September session of the National Assembly. This regular session is seen as a major turning point that will determine whether the bill passes, and it will also dictate the speed at which the domestic blockchain industry enters the mainstream financial system. We break down why the industry and the community are paying close attention to this parliamentary schedule, along with the core issues and their background.

Why is the September session the 'Golden Time'?

The primary reason this September regular session is being called the 'Golden Time' is the timing for bill processing. If the Virtual Asset Framework Act is not properly addressed during this session's standing committee subcommittee, related discussions will naturally be pushed to next year.

Industry experts are expressing concern that if this opportunity is missed, Korea could fall behind in the race for global asset tokenization and the stablecoin market. This is because domestic blockchain companies and financial institutions need a clearly defined regulatory environment to confidently prepare for related projects.

Adding to this is another realistic pressure: the 22% tax on virtual asset income scheduled for January 2027. Many in the industry and community argue that before taxes are levied, a solid legal framework to protect investors must be established first. This is why there is strong support for the argument that the Framework Act must pass this September to prevent confusion caused by regulatory gaps.

The Hottest Issue: The Stablecoin '51% Rule'

The most contentious issue is the so-called '51% rule' proposed for issuing KRW-pegged stablecoins. The Bank of Korea argues that to ensure financial stability, commercial banks should hold more than 51% of the stake in any stablecoin issuance consortium. Conversely, the Financial Services Commission (FSC) suggests more flexible criteria, warning that this regulation could stifle market vitality by blocking entry for startups and fintech companies with new ideas.

This can be easily understood as a business partnership. Imagine trying to start a new business, only for a powerful and secure bank partner to propose, "We will hold a majority 51% stake, and you will participate with only a minority share." This 'equity ratio' perfectly encapsulates the differing perspectives between banks, which prioritize safety and control, and fintech firms, which seek to innovate in a more liberal environment.

Ultimately, the key task in passing this bill is finding the right compromise that creates a sturdy fence for financial stability without extinguishing the spark of innovation.

Last-Minute Behind-the-Scenes Coordination and Integrated Legislation

The government and the National Assembly are also working hard behind the scenes to speed up the legislative process. In late July, the Financial Services Commission held private discussions with officials including Representative Yoo Dong-soo, Chairman of the National Assembly's National Policy Committee. They discussed coordinating differing opinions in advance and proposing an integrated alternative bill under the committee chair's name.

The reason for settling these issues beforehand is clear: they hope to minimize unnecessary conflict during the formal parliamentary review process so that the bill can be passed swiftly within this September regular session.

Industry players are cautiously watching the results, hopeful that once this integrated bill is drafted, it will accelerate the previously stagnant discussions.

Points to Watch

The longer the regulatory vacuum lasts, the greater market uncertainty becomes. With major institutional projects, such as the Bank of Korea's 2027 government bond tokenization pilot, already announced, establishing clear rules for the virtual asset market has become more important than ever. It is time to calmly observe market changes to see if this September's session can become a stable foundation for the domestic blockchain industry.