Government’s Stablecoin Proposal... “Seven Bills and BOK Disagreements, Long Road Ahead” [Crypto Briefing]

[Financial News] The government’s proposal to regulate Korean won-based Stablecoins is expected to be unveiled next month. While an October announcement was initially anticipated, discussions between the government and the ruling party have made a release next month more likely. However, with seven Stablecoin-related bills and the Digital Asset Basic Act still pending in the National Assembly, and differences between the Bank of Korea (BOK) and financial authorities yet to be resolved, the legislative process is expected to take considerable time.
According to the Virtual Asset industry on the 27th, the Financial Services Commission (FSC) plans to submit a Stablecoin regulatory bill to the National Assembly within the year. On the 20th, Lee Eog-weon, Chairman of the FSC, stated at the National Policy Committee’s parliamentary audit, “We are in the final coordination stage with relevant ministries and plan to submit the proposal to the National Assembly within this year.” The FSC had initially aimed to disclose the government proposal to the National Assembly this month, but the timeline was pushed back due to prolonged discussions over specific details.
The government proposal will be released in the form of a parliamentary bill after discussions with the office of Kang Jun-hyeon, the Democratic Party of Korea (DPK) lawmaker and ruling party secretary of the National Policy Committee. An official from Kang’s office stated, “After receiving the government proposal in November, we plan to refine and supplement it,” adding, “The draft regulation itself is in its final stages.”
Although the government proposal, which will serve as a benchmark for the seven bills currently submitted, is urgently needed, the delay in submission has also pushed back the legislative schedule. As a result, some believe that passage in the first half of next year is uncertain.
Since the start of the 22nd National Assembly, bills regulating Korean won-based Stablecoins have been introduced by lawmakers Min Byung-deok, Kim Eun-hye, Ahn Do-geol, Kim Hyun-jung, Lee Kang-il, Kim Jae-seop, and Choi Boyun, spanning both ruling and opposition parties.
Differences in perspective between financial authorities and the BOK are also a variable. Most parliamentary bills, including those from the FSC, have adopted a licensing system that allows only businesses approved by the FSC to issue Korean won-based Stablecoins. In contrast, the BOK insists on a bank-centered issuance model. On the 20th, BOK Governor Rhee Chang-yong remarked during the parliamentary audit, “The main difference is that we believe a gradual shift toward a bank-centered approach is preferable.”
The FinTech and Virtual Asset industries stress the urgent need for clear standards, citing difficulties in planning specific business strategies amid ongoing uncertainty. A representative from the Virtual Asset industry commented, “Although there have been discussions with FinTech companies, progress has stalled due to the lack of legislation.”
Kim Hyun-jung, a researcher at KIWOOM Securities, noted, “The BOK has emphasized the need for its opinions to be reflected in the legislative process, and if the BOK’s authority is strengthened, bank-centered issuance is likely to prevail. However, the current government policy leans toward innovation and is moving to allow private sector issuance. The development of domestic Stablecoin legislation will likely begin by narrowing the gap between these two positions.”
yimsh0214@fnnews.com Im Sang-hyuk Reporter