Financial Services Commission, Promotes Legislative Proposal for Basic Virtual Asset Law.. Ruling and Opposition Parties Compete for 'Crypto Preemption' [Crypto Briefing]

[Financial News] Ahead of next year's June local elections, ruling and opposition party members are moving to preempt issues related to virtual asset legislation, including Korean won stablecoins. This is because the number of users trading virtual assets has exceeded 10 million, with 20-40 year-olds, a key voter demographic, accounting for 80%. 
■Financial Services Commission Discusses Basic Virtual Asset Law with Ruling Party Secretary
On the 18th, according to the National Assembly and related industries, the Financial Services Commission is considering shifting the second phase of legislation (Basic Virtual Asset Law) for completing the virtual asset regulatory framework from government legislation to legislative proposal by members of the assembly. Unlike government legislation, legislative proposals by assembly members do not require regulatory impact analysis or inter-departmental coordination.
Currently, it is reported that the proposal is likely to be initiated through the office of Kang Jun-hyeon, the ruling party secretary of the National Assembly Political Affairs Committee, which oversees the Financial Services Commission. A source familiar with the situation in the National Assembly said, “Initially, Kang's office was seeking to establish the Digital Asset Innovation Act with the Korea Fintech Industry Association (FinSanHyup), but recently changed strategy,” adding, “As the ruling party secretary, they are discussing initiating the second phase of legislation being prepared by the Financial Services Commission in the form of a legislative proposal by assembly members.”
A representative from Kang Jun-hyeon's office also stated, “Since building a digital asset ecosystem is a national task, we are reviewing various options with financial authorities.” According to the draft presented by the Financial Services Commission in its report to the National Planning Committee, the basic law will include content related to △listing and disclosure △business conduct of operators △investigation and punishment of unfair practices.
Kim Jae-seop, a member of the National Assembly Political Affairs Committee from the People Power Party, is also reportedly preparing a comprehensive legislative proposal covering the entire virtual asset industry. 
Although Democratic Party member Min Byeong-deok, also a member of the Political Affairs Committee, secured the title for the 'Digital Asset Basic Law' first, the People Power Party is also prioritizing related policies such as the Basic Virtual Asset Law at the level of its parliamentary leadership. Recently, Kim Eun-hye, Deputy Chief Policy Officer of the People Power Party, secured the title for the first bill related to Korean won stablecoins, such as the 'Act on Innovation in Payments Using Value-Stabilized Digital Assets,' in the same context.
A representative from Kim Eun-hye's office explained the background of the bill's proposal, saying, “In major countries like the United States, regulatory frameworks for digital assets that stabilize value by linking to specific currency values are being established,” and “However, domestically, there is still no institutional basis for issuing and distributing value-stabilized digital assets, delaying the introduction and use of stablecoins as a payment method.”
■Urgency in Legislating Korean Won Stablecoins
The industry is placing weight on the observation that the legislative proposal related to Korean won stablecoins will be processed first before the second phase of legislation such as the 'Virtual Asset (Digital Asset) Basic Law.' With the local elections next June approaching, it is analyzed that both ruling and opposition parties will accelerate the pre-processing of the Korean won stablecoin bill based on political calculations.
In the Korean won stablecoin policy forum held under the initiative of Min's office on this day, voices calling for a 'speed battle' were high. Lee Byeong-gyu, Head of Innovation Growth Support at Naver Pay (Director), said, “A specific design is needed on how to introduce Korean won stablecoins safely and efficiently,” adding, “To compete with global payment standards, securing interoperability based on an open network is important, and partnerships and joint standard setting across the industry must be accompanied.”
In response, Min said, “In the global digital financial order centered on dollar-based stablecoins, we will raise awareness of digital currency sovereignty through exploring the institutional, technological, and policy basis of Korean won stablecoins,” emphasizing that “the fusion of Korean won stablecoins and domestic platforms will open a true 'digital won era.'”
elikim@fnnews.com Kim Mi-hee Reporter