South Korea plans to introduce a draft digital asset law this month, with a proposed cap of 15% to 20% on individual shareholders' stakes in cryptocurrency exchanges.

According to South Korean media outlet EToday, South Korea’s Financial Commission is reconciling inter-agency differences over the government draft of the Digital Asset Basic Act, aiming to submit the bill within November and advance it as parliamentary legislation. Regulators are discussing capping single shareholders’ stakes in crypto exchanges at 15% to 20%, with a 1- to 2-year transition period for existing platforms. Given property rights disputes, an alternative proposal limiting only voting rights is also under consideration. The bill plans to switch crypto exchange access from a notification-based system to a licensing regime, with stablecoin issuers expected to adopt a bank-centered consortium structure. Additionally, regulators are discussing introducing no-fault liability for damages from hacking incidents and system failures, and listing violations of crypto asset holding obligations as grounds for business suspension. The delay in crypto asset taxation has boosted legislative discussions. South Korea’s Deputy Prime Minister and Minister of Economy and Finance Lee Hun-gyun stated on November 5 that he will consult with the National Assembly to push for a two-year delay in the crypto asset income tax originally scheduled to take effect next year. The ruling party advocates prioritizing the formulation of the Digital Asset Basic Act to establish a comprehensive regulatory framework and leave an adaptation period for enterprises and investors.