The Democratic Party of Korea's digital assets task force (TF) conveyed advisors' opinions that the government plan to grant stablecoin issuance authority only to consortia in which commercial banks hold 51% or more equity "does not meet global standards and could hinder innovation," effectively stating its opposition. The Democratic Party of Korea plans to immediately begin the legislative process once the government submits the "Digital Assets Basic Act" in January next year.
The Democratic Party's Digital Assets TF held a closed-door meeting with advisors at the National Assembly the same day. The Democratic Party of Korea plans to proceed with legislation for the "Digital Assets Basic Act" once the government plan is submitted, but moved to apply pressure based on expert opinions after the Financial Services Commission (FSC), the ministry in charge, and the Bank of Korea (BOK) failed to narrow differences and submit the government plan. The Digital Assets Basic Act is a bill to clarify the legal basis for digital asset issuance, with core provisions covering rules for stablecoin issuance and distribution, issuer reserve asset requirements, and disclosure and listing standards.
The key point of contention is who issues stablecoins. The Bank of Korea (BOK) argues that issuance rights should be granted only to consortia in which commercial banks hold 51% or more equity, while the Financial Services Commission (FSC) believes that, to invigorate the industry, participation in issuance should also be allowed for nonbank sectors such as Fintech and Blockchain corporations.
At the meeting, many expressed opposition to the Bank of Korea (BOK)'s demand. TF secretary Rep. Ahn Do-geol said in a briefing after the meeting, "Most experts expressed concern about the '51%' model proposed by the Bank of Korea (BOK)," adding, "With such a governance structure, it may be difficult to realize the innovation and network effects sought through stablecoins." He continued, "There are no legislative precedents that require a specific business sector to hold 50% equity, and that does not align with global standards," and explained, "The Bank of Korea is considering a central bank digital currency (CBDC), which could also create conflicts of interest in that regard." According to the TF, the advisors agreed that the issuance主体 should be designed with a more open and competitive structure to build both innovation capacity and market demand.
TF members shared the advisors' views. Rep. Ahn said, "Stablecoins are meant to drive new innovation," and "we are in agreement on this point."
Regarding the oversight framework, Rep. Ahn said concerns were raised at the meeting that establishing a new "Value Stability Committee," a policy council involving the Bank of Korea, "could become an unnecessary layer of bureaucracy." Instead, opinions were offered to expand participation by private-sector experts and elevate the committee's status to report directly to the president to strengthen policy momentum.
On the legislative timeline, the Democratic Party of Korea signaled a fast track. Rep. Ahn said, "Legislation should proceed as quickly as possible," adding, "We will not go beyond that time (the targeted January)." The Democratic Party of Korea plans to hold additional meetings with the industry to gather market feedback as soon as the government submits its plan, and to prepare a final bill that reflects it.