Global digital asset companies are visiting South Korea in succession and signaling their willingness to enter the market, but concerns are growing in and outside the industry as the Digital Asset Framework Act, the second stage of digital asset legislation, is delayed after failing to clear the National Assembly.

On April 24, the National Assembly and the digital asset industry said that executives from major companies leading the global digital asset ecosystem have visited South Korea one after another.

Jeremy Allaire (제레미 알레어), co-founder and CEO of Circle, said at a press briefing in Seoul on April 13 that South Korea is one of the most dynamic stablecoin markets in the world. He also said he would work with local companies once a won-denominated stablecoin system is put in place.

Staff from Tether, the top stablecoin issuer by market share, also visited South Korea this month. They met with KB Financial Group and Coinone and discussed ways to secure distribution networks in preparation for the passage of the second-stage digital asset bill.

Adeniyi Abiodun (아데니이 아비오둔), chief product officer at Mysten Labs for Sui, also recently visited South Korea and named it as his top market priority in Asia.

He said he is discussing partnerships with financial institutions and big tech companies. He took a cautious stance, saying details of any cooperation could be disclosed only after stablecoin-related regulations and guidelines in South Korea become clear.

Global companies are actively exploring entry, rating South Korea highly for the size of its digital asset market and its receptiveness to technology.

But they commonly attach a precondition that formal compliance and infrastructure building are possible only after legal pathways are 마련돼야, including allowing foreign-issued stablecoin operators to enter and enabling corporate participation in the digital asset market.

Although many talks are under way on cross-border payments and infrastructure between global operators and domestic financial institutions, the lack of legislation means they cannot move to the stage of practical service commercialisation.

In contrast to overseas firms' active moves, discussions on South Korea's Digital Asset Framework Act have repeatedly stalled. The National Assembly's Political Affairs Committee currently has 5 digital asset framework bills pending, including one proposed by lawmaker Choi Bo-yoon as well as proposals by Min Byeong-deok, Lee Kang-il, Kim Jae-seop and Park Sang-hyuk.

The bills include key measures needed to foster the industry, such as establishing legal definitions of digital assets, introducing licensing and registration systems for operators by type, and setting disclosure and internal control standards to ensure market soundness.

A key issue is establishing a regulatory framework for value-linked digital assets, including a licensing system for won stablecoin issuers, requirements to maintain redemption reserves and redemption liabilities.

Political circles and financial authorities had planned to pursue the second-stage legislation in the first quarter or the first half of this year, but the schedule has continued to slip. In mid-month, reopening talks by convening the Political Affairs Committee's Legislation Review Subcommittee No. 1 was strongly considered.

Expectations grew that the delayed second-stage legislation would finally move to the standing committee review stage, but the subcommittee meeting scheduled for April 15 was ultimately canceled after the ruling and opposition parties failed to coordinate schedules, bringing the legislative discussion to a halt again.

Delays have also affected consultations between the party and the government for the second-stage legislation as major macroeconomic and diplomatic issues, including responding to the Middle East situation, have overlapped. In and outside the National Assembly, there is speculation that passing the bill within the first half of this year will be effectively difficult, with political variables including local elections in June and the formation of the National Assembly leadership in the second half added to the mix.

Considering the need to prepare subordinate regulations and any grace period required before implementation, the point when the system actually takes root in the market is likely to go well beyond 2026, the government's original target.

That is why criticism is being raised that, as the global digital asset market is rapidly reorganising around institutional investor entry and AI-based payment ecosystems, South Korea's regulatory vacuum could lead to the domestic industry falling behind.

Major commercial banks and financial firms that are carrying out pre-emptive work in preparation for a bank-led stablecoin system are also unable to flesh out business models due to the lack of a clear legal basis. A waiting period is being prolonged as both companies and the financial sector hold back investment and wait only for the system to be established.

An industry official pointed out that discussions in the Political Affairs Committee should be resumed quickly and regulatory standards that clearly meet global standards should be established in order to normalise digital asset infrastructure and foster the industry.