Ando Geol Assemblyman, Promotes Digital Asset Committee for Won Stablecoin [Crypto Briefing]

[Financial News] Regarding the won-based stablecoin, a policy coordination platform among related authorities will be legislated. As the issuance volume, reserve asset composition, and circulation volume of won stablecoins have a significant impact on monetary policy and the foreign exchange market, the goal is to strengthen on-site responsiveness by forming a working-level consultative body related to currency and foreign exchange.

■National Currency Order Embraces Won Stablecoin
Ando Geol, a member of the National Assembly's Planning and Finance Committee and Special Committee on Budget and Accounts, announced on the 28th that he had proposed the 'Act on Issuance and Circulation of Value-Stable Digital Assets' to establish a 'Value-Stable Digital Asset Committee' in which the Ministry of Strategy and Finance (foreign exchange), the Bank of Korea (currency), and the Financial Services Commission (finance) jointly participate and closely coordinate related policies.
This is the first comprehensive legislative bill in Korea to institutionalize value-stable stablecoins as part of the national currency order and innovative financial system. According to the bill, the Financial Services Commission can immediately take emergency measures on issuance, circulation, and redemption if there are concerns about market order disruption and user damage. The Bank of Korea can also request data submission or joint inspection from the Financial Services Commission or request emergency orders for the purpose of implementing monetary policy. The Ministry of Strategy and Finance can exercise similar authority to maintain order in the foreign exchange market.
Assemblyman Ando said, “This bill has been discussed and prepared from the Democratic Party’s Future Economic Growth Strategy Committee and was presented as a presidential campaign pledge during Lee Jae-myung’s candidacy,” explaining the preparation process. He continued, “This bill will be the first step in financial innovation to build the core infrastructure of the digital financial system,” adding, “Stablecoins are the lifeblood of the national economy in the digital age and the forefront of monetary sovereignty.” The purpose of the bill is that Korea should open a new digital financial era with won-based stablecoins like the United States with the 'digital dollar'.
■'Pre-Approval System by Financial Services Commission'  Minimum Capital of 5 Billion Won
This legislative bill includes the management system for △issuance △circulation △reserve assets △user protection △currency △foreign exchange policies of stablecoins.
First, stablecoin issuers must obtain prior approval from the Financial Services Commission. The issuer’s qualification requirements include △being a financial institution or a corporation under the Commercial Act (in the case of a foreign corporation, having established a branch or office) △having a minimum capital of 5 billion won △meeting basic standards such as having computer facilities and dedicated personnel.
Before issuing stablecoins, a white paper containing the total issuance limit, circulation plan, reserve asset composition, and redemption method must be pre-reported to the Financial Services Commission. Issuers must also fulfill the obligation to prepare a product description and disclose it to the market.
All stablecoins must be backed by highly liquid real assets of at least 100% of the issuance balance and must consist of cash, demand deposits, and government and local government bonds with a remaining maturity of less than one year. A certain ratio must be secured in cash or deposits, and they must be entrusted or deposited in a separate account from the issuer’s own assets. The composition and status of reserve assets must be disclosed at least once a month, and the results must be publicly disclosed after quarterly review by an accounting firm.
User protection is also a central axis of the bill. Even if the issuer goes bankrupt, the reserve assets are fully prioritized for user redemption and cannot be used for seizure or collateral. If a user requests redemption, it is legally mandatory to redeem within three business days. Exchanges must periodically evaluate △issuer eligibility △disclosure status △whether there are any illegal facts before and after listing. Both issuers and exchanges will be liable for damages if they violate these regulations.
To prevent the monetization of stablecoins and the resulting disruption of monetary policy and financial markets, interest payments are completely prohibited. 
Assemblyman Ando emphasized, “This bill is not just a financial regulation but a blueprint for digital economic sovereignty and a legislative breakthrough towards the internationalization of the future won,” and “The government and the ruling party will lead the initiative to quickly proceed with the second phase of legislation, including foreign exchange and anti-money laundering prevention, in cooperation with the government.”
The office of Assemblyman Ando will hold a ‘Value-Stable Digital Asset Bill Briefing and Press Conference’ on the 30th to additionally announce the impact on the overall monetary, financial, and foreign exchange markets after institutionalization.
elikim@fnnews.com Kim Mi-hee Reporter