As Korea's institutionalization of stablecoins is delayed, an analysis noted that the business environment for related industries is deteriorating. It argued that the timeline for finalizing legislation should be set first and the details coordinated afterward.
On the 12th, the research lab of BITPLANET(049470), a domestic Bitcoin digital asset treasury (DAT) corporations and a KOSDAQ-listed company, published this industry analysis report.
According to the report, 10 bills from lawmakers related to the basic law on digital assets (second-phase law on virtual assets) have been introduced but are pending in the National Policy Committee's subcommittee for bill deliberations. A consolidated review has not yet been held, and the Financial Services Commission's government bill also has not been submitted to the National Assembly.
In political circles, the proposed issuers of a won-denominated stablecoin were presented as "banks 50%+1 share, Fintech 34%." However, this is not a finalized government bill. On core issues such as restrictions on equity held by major shareholders of exchanges, the National Assembly and the government have not found common ground.
While the bill drifted, domestic virtual asset users moved funds into dollars. Data the Bank of Korea submitted to the National Assembly show that, as of the end of February this year, stablecoin holdings at the five major domestic virtual asset exchanges (Upbit, Bithumb, Coinone, Korbit, GOPAX) totaled 607.1 billion won.
That is about 6.9 times higher than at the end of July 2024 (88.5 billion won). However, compared with the peak at the end of December last year (872.3 billion won), it is 30.4% lower. During the same period, the amount of domestic virtual asset holdings fell to less than half.
BITPLANET Research Lab said, "Given that the longer rules are delayed, the more new businesses remain in a gray area, it would benefit the market to set the timing for finalizing legislation first and then coordinate the details."