Ando Geol of the Democratic Party of Korea noted on the 12th the intention to establish a legal basis by drafting legislation to further complement the currency and unique characteristics of stablecoins, which have attributes of both currency and foreign exchange.
Representative An, serving as the senior vice chairman of the Democratic Party of Korea's Committee for Economic Growth, held a press conference at the National Assembly and said, “This is the time when institutional mechanisms for stablecoins based on the Korean won need to be urgently prepared in terms of securing a global payment and settlement method and currency sovereignty.”
The bill proposed by Representative An is set to include ▲ basic requirements for qualifications and licensing for the issuance of stablecoins, alongside collateral asset conditions ▲ management plans from a currency management perspective ▲ necessary items for building and developing a sound stablecoin ecosystem in terms of foreign exchange transaction management ▲ and safety measures for user protection.
Representative An emphasized the necessity for separate legislation for stablecoins based on the Korean won. Unlike general digital assets such as Bitcoin, which have high price volatility, stablecoins have stable prices and serve as a payment method (digital currency), necessitating distinct legal regulations.
Additionally, since stablecoins have characteristics as currency, institutional mechanisms should be prepared to regulate issuance scale and distribution from a currency management perspective. Stablecoins also have attributes of foreign exchange, allowing them to be used as a tool for international trade and investment settlement, requiring detailed regulations for stable foreign exchange supply and management, Representative An conveyed.
Representative An said, “This will provide institutional support for the transition to a digital economy and secure currency sovereignty of the Korean won, while significantly enhancing the international competitiveness of the domestic digital asset platform industry. Building an ecosystem for stablecoins based on the Korean won can be utilized as a method for international transaction settlements, contributing to the globalization and economic influence of the Korean won.”
He mentioned, “The detailed content of the bill will be precisely formulated through a public discussion process by forming a task force with experts from the industry, academia, research institutions, and related agencies such as the Ministry of Economy and Finance and the Bank of Korea.”