South Korea's financial regulator and central bank clash over stablecoin authority

In South Korea, a dispute has erupted between the Financial Services Commission (FSC) and the Bank of Korea over which organization should be responsible for issuing won-pegged stablecoins. This disagreement has delayed the submission of the Phase II Virtual Asset Bill, which was scheduled to be submitted to the National Assembly.

Bill Delay

According to local media, the Financial Services Commission failed to submit the bill to the National Assembly's Committee on National Policies. The Democratic Party of Korea had previously set a deadline of December 10 for the bill's passage. This deadline was set during consultations between the government and political parties on December 1.

Central Bank Requirements

The Bank of Korea insists that only consortiums in which commercial banks hold at least 51% of the shares can issue won-based stablecoins. This requirement could significantly change the country's stablecoin market and impact crypto investors.

Democratic Party Proposals

In June, the Democratic Party of Korea proposed the Basic Digital Asset Bill, which aims to regulate stablecoins. Legislators from the party proposed that stablecoins be issued by non-banking organizations and payment systems, with the Financial Services Commission acting as the primary regulator.

Conflict of Interest

Currently, the FSC and the Bank of Korea have disagreed on which organization should be responsible for issuing stablecoins. The central bank insists that stablecoin issuance should only be permitted by consortiums, while the FSC proposes a more flexible approach, allowing non-banking organizations to participate.

Impact on Crypto Investors

The disagreement between the FSC and the Bank of Korea could create uncertainty in the stablecoin market and impact crypto investors. If the bill is adopted with the Central Bank's proposals, it could limit opportunities for new market players and change the dynamics of existing stablecoins.

In Conclusion

Therefore, the situation requires close monitoring, as it could have a significant impact on the future of the cryptocurrency market in South Korea. Follow our latest news to stay up-to-date on the latest developments in the world of cryptocurrency.