South Korean National Assembly Discusses KRW Stablecoin Issuance Eligibility, Industry Calls for Opening Access to Fintech and Digital Asset Companies

On Nov. 12, according to South Korean media ZDNet Korea, the National Assembly of South Korea held a special discussion on the regulation of won-pegged stablecoins. Digital asset custodian BDACS CEO Ryu Hong-ryeol called for won stablecoin issuance eligibility to not be limited exclusively to banks, but rather to allow fintech and digital asset enterprises that meet regulatory conditions to participate.

Currently, one of the primary points of contention in the legislative discussions over South Korea's Digital Assets Basic Law is whether the issuing entity must be majority-owned by a bank (>50%). Ryu Hong-ryeol argued that regulation should prioritize assessing an enterprise's reserve asset management, technological controls over issuance and redemption, and independent auditing capabilities, rather than restricting approval based solely on institutional type.

The session also addressed regulatory topics including stablecoin cold wallet custody, key management, multi-signature schemes, audit cycles, and the permissible scope of blockchain networks, suggesting appropriate adjustments to existing network isolation regulations applicable to financial institutions.