- South Korea advances the Digital Asset Basic Act, limiting stablecoin issuance control.
- Stablecoin issuers must be consortiums with a minimum 51% bank ownership stake.
- Government targets December draft as lawmakers push to finalize rules by early 2026.
South Korea’s government and National Assembly are developing second-phase digital asset legislation titled the “Digital Asset Basic Act.” The government proposes to restrict stablecoin issuers to consortiums holding at least 51% bank ownership. The Democratic Party’s Digital Asset Special Task Force has confirmed this approach.
The Democratic Party and the Financial Services Commission conducted a closed-door meeting at the National Assembly on December 1 to finalize coordination on the legislation. Representative Kang Jun-hyun stated that the Financial Services Commission and Bank of Korea completed coordination on the framework.
Government Proposal Faces Repeated Delays
The existing Virtual Asset User Protection Act functioned as first-stage legislation but limited its scope to regulating virtual asset operators. The Financial Services Commission has prepared a government proposal for submission through Representative Kang’s office. This proposal will merge with previously introduced digital asset bills.
The most contentious element involves stablecoin issuer qualifications. Differences between the Bank of Korea and the Financial Services Commission repeatedly delayed the government plan, originally scheduled for an October submission.
The Bank of Korea argued that stablecoin issuers should be limited exclusively to banks. Some lawmakers advocated opening issuance to fintech and blockchain companies. Representative Kang announced that the Financial Services Commission and most lawmakers agreed to the consortium framework requiring 51% bank ownership.
Kang Declines to Provide Specific Details
Capital requirements remain under discussion, with Kang declining to provide specific details. The Financial Services Commission released a statement clarifying that nothing concrete has been finalized regarding the consortium plan. The agency confirmed it will swiftly prepare the framework and support legislative discussions.
The ruling party set a December 10 deadline for the submission of government proposals. Representative Kang’s office requested that authorities deliver the plan by this date to begin discussions by December. Kang stated the government must provide a framework before discussions can commence.
Multiple second-stage bills covering the digital asset ecosystem have been introduced. These include the Digital Asset Basic Act proposed by Democratic Party member Min Byeong-deok, the Digital Asset Innovation Act from Lee Kang-il, and the Digital Asset Integration Act from People Power Party member Kim Jae-seop.
While discussions within December are possible, legislation completion this year appears unlikely. Representative Kang stated that legislation will likely occur by January 2026.
Related: FDIC Sets December Deadline for Federal Stablecoin Licensing; Capital Rules to Follow in 2026
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Source: https://coinedition.com/south-korea-advances-digital-asset-basic-act-with-bank-led-stablecoin-issuer-requirement/
