The Democratic Party of Korea will introduce the Digital Asset Basic Act, which includes rules for the digital asset industry and the issuance of stablecoins, as a party-sponsored bill in early next month. After the government failed to produce a joint proposal through consultations between the Bank of Korea and the Financial Services Commission, the Democratic Party is drawing up an integrated bill based on proposals from its members.

Democratic Party of Korea Digital asset TF Chairperson Lee Jeong-mun (left), Commissioner Lee Kang-il (front right), and other officials begin the first meeting to draft a Digital asset TF bill at the National Assembly Members' Office Building on the 20th./Courtesy of Yonhap News

The Democratic Party digital asset task force (TF) held a closed-door meeting on the afternoon of the 20th at the National Assembly Members' Office Building to discuss an integrated version of the Digital Asset Basic Act. The digital asset TF plans to meet again on the 27th to wrap up organizing the issues related to the bill.

Lee Jeong-mun, a Democratic Party lawmaker who chairs the digital asset TF, said, "At the party level, we plan to draw up our own bill and adopt it as the party line through the policy caucus," adding, "After we finalize the party's position, there will be an opportunity to sort out differing views with the government through high-level party-government consultations."

However, Lee noted, "(The Digital Asset Basic Act) falls under the National Policy Committee in the National Assembly, and the People Power Party holds the standing committee chair," adding, "Even if the bill subcommittee is convened in February after talks between the floor managers, we have to see over how many sessions it will take to finish."

The Democratic Party has pushed to enact the Digital Asset Basic Act to institutionalize won-denominated stablecoins. In the process, disputes arose among government proposals over whether the issuer should be a "consortium with a majority bank equity (50%+1 share)" and whether a unanimous-approval body is needed for issuance authorization.

An Do-geol, a lawmaker who serves as TF floor manager, said, "Next week, TF members will gather to sort out the issues, and at the end of January we will report to the policy committee chair and the floor leader before setting the party line," adding, "It is desirable to move toward an integrated law that creates an overall ecosystem for general virtual assets and stablecoins."

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