In South Korea, both the ruling and opposition parties have simultaneously developed alternative bills aimed at regulating the market for stablecoins — digital tokens pegged to the Korean won. Both initiatives seek to enhance transparency and control over the issuance of such assets; however, their approaches significantly differ regarding interest payments to stablecoin holders.
This is reported by Business • Media
Main Provisions of the Bills
Democratic Party lawmaker Ahn Do-Geol proposed a complete ban on interest payments for stablecoins. His bill also stipulates that issuers of these assets must obtain a license from the Financial Services Commission and possess a minimum capital of 5 billion won (approximately $3.6 million at current exchange rates). In the event of an issuer’s bankruptcy, users must receive compensation within three business days, and reserve assets are not subject to confiscation or use as collateral.
Meanwhile, the bill proposed by People Power Party lawmaker Kim Eun-Hye does not contain a similar ban on interest but focuses on strict transparency and licensing requirements for issuers, mandatory submission of a white paper and technical documentation. The project also establishes rules for the redemption of digital assets with a fixed value, requirements for reserve backing with liquid assets, and criteria to ensure the solvency and stability of issuers.
Increased Control and Impact on the Industry
Both initiatives propose granting financial regulators, including the Bank of Korea, expanded powers for inspections and information gathering to support monetary policy. A mandatory requirement for stablecoins to be backed by highly liquid assets is also introduced.
“This bill is based on discussions in the Democratic Party’s Committee on Future Economic Strategy and reflects President Lee Jae-Myung’s campaign promise,” Ahn noted.
The legislative innovations in the field of stablecoins align with President Lee Jae-Myung’s policy, which supports the integration of cryptocurrencies into the financial system and aims to strengthen the country’s position in the global digital asset market.
Rich O., regional manager for APAC at the hardware wallet OneKey, emphasized:
“Regulating stablecoins in Korea requires a balanced approach that combines government oversight with room for private sector innovation.”
He also warned that excessive restrictions could negatively impact South Korea’s competitiveness in the global digital finance market.
It is worth noting that earlier, the largest commercial bank in the country — KB Kookmin Bank — filed documents to register 17 new trademarks related to stablecoins and financial services. This indicates a growing interest in the digital asset market among key players in South Korea’s financial sector.