South Korea's draft "Basic Law on Digital Assets" will include investor protection measures, but due to disputes, it has been postponed to next year.

On December 30, according to Yonhap News Agency, the South Korean government is drafting the “Basic Law on Digital Assets”(Virtual Asset Second Phase Bill), which will include investor protection measures such as no-fault compensation liability for digital asset operators and risk isolation for stablecoin issuers’ bankruptcy. The bill requires stablecoin issuers to deposit reserve assets into banks or other management institutions and to deposit or trust over 100% of the issuance balance. However, due to disagreements between the Financial Services Commission and the Bank of Korea on core issues such as the issuance entities of stablecoins and the setup of regulatory agencies, the government plan submission will be delayed until next year. The Financial Services Commission stated that they are currently working with relevant agencies to gradually narrow the differences in positions.