South Korea has postponed the passage of the second phase of its Virtual Asset Act due to disputes over key clauses, particularly those concerning stablecoins. The legislation, which seeks to regulate digital assets comprehensively, faces contention over issuer qualifications for Korean won stablecoins and the separation of financial and virtual asset operations. Additionally, a proposed 15%-20% cap on shareholdings by major shareholders in exchanges has been criticized as too restrictive. The delay has also stalled discussions on related issues, including spot virtual asset ETFs and the trading of virtual assets by listed companies. Ongoing negotiations involve government agencies, industry stakeholders, and political groups as they work to resolve these controversies.