Last week South Korea published the Basic Digital Asset Act legislative bill, which gave significant powers of approval over stablecoin issuers to the Financial Services Commission (FSC) rather than the Bank of Korea (BOK). That was despite recent lobbying by the central bank for a key supervisory role. Yesterday the Democratic Party of Korea, which won this month’s Presidential election, introduced complementary legislation that adjusts this regulatory framework, the Digital Asset Innovation Growth Act.
While the newer bill is meant to supplement the Basic Digital Asset Act, there’s considerable overlap, especially regarding stablecoin issuance. For example, the minimum capital requirement for an issuer was doubled from won 500 million ($360,000) to won 1 billion ($720,000). The new legislation also addresses some of the central bank’s earlier concerns about regulatory oversight by providing a role for BOK.
While issuer supervision still falls to the FSC, the central bank can express an opinion on any won stablecoin issuer and the FSC is obliged to comply unless it has a good reason. The Bank of Korea can also ask for stablecoin data from the issuer at any time and request that the Financial Services Commission perform an inspection, Korea Economic Daily reported. There’s a lighter touch regulation for small issuers, which have not exceeded a billion won over the past year. The bill also states that won stablecoins are neither securities nor electronic money.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
