Conflict Over Stablecoin Issuance Authority Continues in South Korea... Will the General Act on Digital Assets Pass in the Second Half?

The United States is moving quickly to pass the Digital Asset Market Clarity Act, a bill regulating virtual assets including stablecoins. In South Korea, however, regulators and the industry remain at odds over who should be allowed to issue them. As the second-stage digital asset legislation, the General Act on Digital Assets, has been pushed back until after next month’s local elections, it is unclear whether it will pass this year.
According to the virtual asset industry on the 5th, the United States Senate reached a bipartisan compromise on the stablecoin yield provision, a key issue in the Clarity Act, on the 1st local time. In South Korea, by contrast, no related discussions have taken place in the political sphere since February.
Since the second half of last year, shortly after the passage of the GENIUS Act, South Korea has been working on a regulatory framework for won-denominated stablecoins centered on the General Act on Digital Assets. So far, however, the issue has remained stuck at the legislative discussion stage.
The biggest divide is over who should be allowed to issue the tokens. The financial authorities say that, for financial stability, a consortium in which banks hold at least 50% plus one share should issue won-denominated stablecoins.
The industry argues that South Korea should follow the U.S. regulatory model. Under the GENIUS Act, both banks and nonbanks can issue stablecoins if they meet certain requirements. It adopts a licensing system that opens the market broadly to private-sector participation while imposing strict standards on reserve assets and Anti-Money Laundering (AML) measures to ensure stability.
An industry official said, "A bank-centered issuance system may help maintain control over monetary policy, but it could also hinder a range of innovations." The official added, "Whether it is a bank or a private company, issuance should be allowed as long as certain qualification requirements are met, while the authorities strictly supervise the process."
With no legislative progress for nearly a year, observers inside and outside the political arena say discussions may not begin until the regular National Assembly session in September at the earliest. The Digital Asset Task Force of the Democratic Party of Korea (DPK) had planned to submit the General Act on Digital Assets to the Legislation Review Subcommittee of the National Policy Committee on the 27th of last month, but the subcommittee meeting did not take place. In addition, major political events are scheduled, including the DPK’s parliamentary leader election in May, the local elections in June, and the party convention in August, which are expected to further delay the talks.
Yang Hyun-kyung, a researcher at iM Securities, said, "There are voices within the ruling party calling for faster legislation, but detailed coordination is still needed on the key issues." She added, "We believe the General Act on Digital Assets is likely to pass in the second half of the year or later."
yimsh0214@fnnews.com Reporter Lim Sang-hyuk Reporter