The Democratic Party of Korea again urged the government to submit a bill within the year regarding the second phase of virtual asset legislation, the "Digital Asset Basic Act." The party plans to push for legislation on its own in Jan. next year regardless of whether the government submits its bill.
The Democratic Party's digital asset task force (TF) held a closed-door meeting on the 11th to receive a briefing from the Financial Services Commission (FSC) on the preparation status of the Digital Asset Basic Act. The ruling party had initially asked the government to submit its bill by the 10th, but the submission fell through as key issues between the Bank of Korea (BOK) and the FSC had not been fully coordinated.
The Digital Asset Basic Act is a bill intended to fill blind spots not covered by the "Virtual Asset User Protection Act," which took effect in Jul. last year, and to clarify the legal basis for digital asset issuance. Core elements include rules on stablecoin issuance and distribution, requirements for issuers' reserve assets, and standards for disclosure and listing.
The FSC and the BOK are said to be in last-minute talks on the remaining issues. Lee Jeong-moon, the TF chairperson, met with reporters after the meeting and said, "From the BOK and FSC's standpoint, most issues have been resolved, and a few unresolved parts, such as the issuing entity, will be resolved soon," adding, "We more strongly requested that the government submit its bill as soon as possible."
TF commissioner and National Policy Committee member Rep. Ahn Do-geol also said, "We have nearly reached an agreement on the issuing entity and the policy consultative body, so they say the government bill can be released soon," adding, "We made it clear that it absolutely cannot be delayed beyond this year."
The main issues are the issuing entity for stablecoins and the decision-making structure of the new policy consultative body, the "Value Stability Committee." The BOK argues that only consortia in which commercial banks hold at least 51% equity should be granted issuing authority, and that the Value Stability Committee for issuance authorization should operate by unanimous consent. In contrast, the FSC believes that, to vitalize the industry, participation in issuance should also be allowed for nonbank sectors such as Fintech and Blockchain corporations.
Some Democratic Party lawmakers also oppose the BOK's demands. Rep. Min Byung-deok of the National Policy Committee told reporters after the meeting, "We cannot accept the BOK insisting on 51% bank equity and demanding unanimity."
Anticipating that the government bill may not be submitted within this month, the Democratic Party plans to introduce its own bill around Jan. next year. On the 22nd, it will hold a meeting with outside advisory members to discuss the legislative direction. Rep. Lee Jeong-moon said, "If the government bill comes out by then, we will discuss based on that bill; if it does not, we decided the TF will proceed with the legislative process."