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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] South Korea’s ruling Democratic Party is moving to introduce a stablecoin regulatory framework as the Financial Services Commission has been slow to advance Phase 2 of digital asset legislation. Floor Leader Kim Byung-ki is preparing to submit a bill tentatively titled the Act on the Issuance and User Protection of Value-Stable Digital Assets.
The draft bill sets tiered capital requirements for issuers—KRW 5 billion for issuance below KRW 100 billion, and KRW 10 billion for issuance above that—allowing smaller fintech firms to participate. Crypto exchanges such as Upbit and Bithumb would be barred from issuing stablecoins to prevent conflicts of interest.
Issuers must hold 100% reserve assets plus an additional 3% buffer, limited to cash, sovereign bonds, or short-term repos. Industry observers say the requirements are stricter than U.S. standards.
알파경제 Kim Jisun Reporter(stockmk2020@alphabiz.co.kr)
