FSC: Issuance structure for won-denominated stablecoins 'not finalized'…draws a line on bank-centered proposal

The Financial Services Commission officially denied reports that it had decided the issuer of won-denominated stablecoins would be a bank-centered consortium, saying "nothing has been finalized." It also said that imposing no-fault liability for damages on virtual asset service providers has not yet been decided.

On the 6th, the FSC said in a press release that "we are continuing consultations with relevant agencies on the main contents of the second-stage virtual asset bill, but core matters including the issuer of stablecoins have not yet been finalized."

Earlier, some outlets reported that the second-stage virtual asset bill, the 'Digital Asset Basic Act,' included provisions defining the issuer of won-denominated stablecoins as a consortium in which banks hold 50%+1 share. It was also suggested that in the initial phase of the system's introduction, emphasis would be placed on stability and tech companies would be positioned as complementary participants.

There were also observations that the bill included provisions to impose punitive fines amounting to 10% of revenue and to impose no-fault liability for damages if a hacking incident occurs at a virtual asset (cryptocurrency) exchange. Other measures reported to be under discussion included operating stablecoin issuance approvals in the form of a consultative body of relevant agencies, limiting major shareholder stakes in exchanges to a minimum of 15%, and setting issuers' own capital requirements at 5 billion won or more.

In response, the FSC made clear that "these matters have not been finalized." The bill is currently at the consultation stage with relevant agencies, and detailed system design will be decided after further discussions, it explained.