Lee Eok-won: “Stablecoins are not designed to represent any specific industry” — cautious on differential regulation of exchange ownership stakes

Lee Eok-won, Chair of the Financial Services Commission (FSC), drew a line on claims that the government’s plan to design stablecoin issuance around banks represents the interests of a particular industry. However, he struck a cautious tone on calls to apply differentiated rules to major shareholders’ stakes in digital asset exchanges.

At a policy briefing to the National Assembly’s Political Affairs Committee on the 5th, Lee said in response to remarks that regulations on stablecoin issuers and exchange ownership are key issues, “We are not taking the side of or considering any particular industry,” adding, “We are designing the制度 after taking a comprehensive view of how to manage risks while harnessing innovative energy for the overall national economy.”

The government is currently maintaining the so-called “bank stake 51% rule,” under which only consortia in which banks hold more than 50%+1 share are recognized as eligible stablecoin issuers. Lee Kang-il, a lawmaker of the Democratic Party of Korea, pointed out that “to foster growth in stablecoins and the digital asset industry, it is also necessary to consider public offering methods that can encourage public participation.”

Rules on major shareholders’ stakes in digital asset exchanges also came under scrutiny. The government is reviewing a plan to cap major shareholders’ stakes in exchanges at around 15%. Lee argued that “the exchange market is effectively dominated by top players, and if the same ownership rules are applied even to latecomers with less than 1% market share, the investor base itself will disappear,” adding that “differentiated regulation is needed depending on market position.”

In response, Lee said, “Various reviews are needed both theoretically and in terms of practical operation,” adding, “There are multiple views, including how to assess market share in the case of new entrants, so we need to examine this further.” In effect, he avoided giving a direct answer on adopting differential regulation for exchange major shareholders’ stakes.

The remarks underscore that the government remains cautious both amid controversy over a bank-centered approach to stablecoin issuers and over the strength of regulation on digital asset exchanges. Analysts say it is highly likely that clashes of interest among industries will become a key issue in forthcoming discussions on the Digital Asset Act.