Andogeol, 'Stablecoin' Bill Proposed… First Comprehensive Legislation by the Ruling Party

[Financial News] The National Assembly proposed a bill on the 28th to institutionalize stablecoins (virtual assets that minimize price fluctuations by fixing their value to the dollar, won, etc.). It is a comprehensive legislative bill to institutionalize stablecoins as part of the national currency order and innovative financial system. This is the first time such a bill has been introduced by the ruling party.
Andogeol, a member of the Democratic Party, held a press conference at the National Assembly Communication Hall on this day and announced that he had proposed the 'Bill on the Issuance and Distribution of Value-Stable Digital Assets' as the main proposer. He stated, "I have proposed the bill on the issuance and distribution of value-stable digital assets as an institutional device to protect the sovereignty of the Republic of Korea's currency and the future of the digital economy," adding, "This bill accepts stablecoins as a pillar of the national currency order and a new financial platform, and establishes a comprehensive legislative framework for a management system suitable for the digital currency era for the first time domestically."
He said, "Stablecoins are no longer a subject of financial experimentation. The United States is already trying to preempt digital currency hegemony through dollar-based stablecoins, and the European Union (EU), Japan, Hong Kong, etc., are also introducing regulatory systems for issuance, distribution, and redemption. However, our country has not even prepared a basic institutional tool for stablecoins," he pointed out.
He continued, "As the uncertain situation continues, we are unable to move forward. If stablecoins issued abroad become active, we will fall behind in the blockchain-based financial innovation flow, and we will inevitably lose sovereignty in currency and foreign exchange policy," he said. He also added, "We may find ourselves unable to properly prevent the potential harm to stablecoin users, which is bound to increase in reality."
The bill proposed by Andogeol this time designed a comprehensive management system from issuance to distribution, reserve assets, user protection, and currency and foreign exchange policy for stablecoins.
The detailed contents include △ introduction of a licensing and pre-reporting system △ 100% reserve asset holding and separate management, priority repayment rights, and exchange obligations △ prohibition of interest and granting of emergency action rights △ establishment of currency and foreign exchange governance, etc.
The issuer intending to issue stablecoins must obtain prior approval from the Financial Services Commission, and the qualifications are financial institutions or corporations under the Commercial Act. They must meet basic standards such as having a capital of over 5 billion won and equipping with computer facilities and dedicated personnel.
Andogeol said, "It's not just about increasing simple payment methods, but creating a new financial platform. I am confident that this is the way forward for finance," adding, "It is about creating a path for our country's finance to play a leading role in opening the door to a new era. It will greatly affect currency and foreign exchange policies, and it is important to prepare protective measures to prevent that. We will consider both innovation and financial market stability."
Andogeol plans to hold additional briefings and press conferences on the 30th to explain the bill and listen to opinions.
In particular, as the ruling party is followed by the opposition party in proposing stablecoin bills, it is expected that discussions within the National Assembly will gain further momentum. On this day, Kim Eun-hye of the People Power Party also proposed a bill for the establishment of a won-based stablecoin. Kim said, "This bill is the first step in providing safety devices for users and breathing life into the related industry," adding, "I hope that the path will open for Korea to lead the stablecoin technology market."
cjk@fnnews.com Choi Jong-geun Reporter