The government failed to submit the "second-phase virtual asset bill," which regulates the issuance of won-denominated stablecoins, within the deadline requested by the National Assembly. The Financial Services Commission (FSC) and the Bank of Korea (BOK) showed differences over who should issue won stablecoins.

National Policy Committee secretary Kang Jun-hyun of the Democratic Party of Korea attends a closed ruling-opposition-government consultation of the National Policy Committee at the National Assembly Members' Office Building in Yeouido, Seoul, on the 1st./Courtesy of News1

According to political circles on the 10th, the FSC did not submit the government's second-phase virtual asset legislative bill, which was scheduled to be submitted by today, to the National Policy Committee. Earlier, the Democratic Party of Korea set the government's submission deadline as the 10th through a party-government consultation on the 1st.

The government bill was delayed as differences between the FSC and the BOK over the issuer of won stablecoins were not resolved. The BOK says issuance should be allowed only to consortia in which banks hold more than 51% equity. The FSC does not oppose bank-centered consortia, but is negative about stipulating an "over 51%" equity ratio. It argues that nonbank sectors, including Fintech, should also participate actively.

The two institutions also differed on licensing issuance and supervisory authority. The BOK argues that a unanimous decision-making body is needed to license stablecoin issuance. It is also seeking the authority to request inspections of stablecoin issuers by the Financial Supervisory Service. The FSC opposes, saying the BOK's authority would be excessive.

If the government bill continues to be delayed, the lawmakers' bills currently introduced could be discussed first. Initially, the Democratic Party sought to pass the second-phase virtual asset bill by reviewing the government bill. In the Democratic Party, lawmakers Min Byung-deok, Ahn Do-geol, and Kim Hyun-jung have introduced bills, while in the People Power Party, lawmakers Kim Jae-seop and Kim Eun-hye have introduced bills.

A Democratic Party member on the National Policy Committee said, "For now, it looks difficult to narrow the differences between the FSC and the BOK," and added, "If the government bill continues not to be submitted, the deliberation process could be prolonged, so we should at least review the bills introduced by lawmakers first."

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