South Korea's Digital Asset Basic Act to Include No-Fault Compensation and Stablecoin Bankruptcy Isolation Mechanism; Government Proposal May Be Delayed Until Next Year

ChainCatcher reports that the South Korean government is drafting the "Basic Act on Digital Assets" (the second phase of crypto asset legislation), which plans to include multiple investor protection measures. These include introducing strict liability for damages for digital asset service providers, as well as establishing bankruptcy risk isolation mechanisms for stablecoin issuers. However, due to significant disagreements over core issues such as the main entities responsible for stablecoin issuance, the submission of the government proposal is expected to be delayed until next year.