Financial Services Commission canvasses brokerage industry views on stablecoins… reviews rules for STO use

South Korea’s Financial Services Commission (FSC) has been found to be additionally gathering views from the securities industry on stablecoin distribution and payment structures.

According to the financial investment industry on the 12th, the Korea Financial Investment Association (KOFIA) sent a notice to major securities firms asking them to submit, by the 13th, any regulatory improvements or institutional supplements needed in relation to stablecoins. The feedback collection was said to have been carried out at the FSC’s request.

The focus of this round of input is understood to be on ways to use stablecoins in the tokenized securities (STO) market. The securities industry has consistently argued that an institutional framework should be put in place to allow stablecoins to be used in STO payment processing and in collateral-setting procedures.

In the market, there is also analysis that the move is a response mindful of recent controversy that stablecoin制度 design is tilting toward a bank-centric approach. The industry has raised concerns that if authority to issue and distribute stablecoins is designed mainly around banks, the role of securities firms could be constrained.

Meanwhile, the government and the Democratic Party of Korea’s Digital Asset Task Force (TF) have prepared an integrated draft of the Framework Act on Digital Assets. The bill is reportedly likely to be introduced as early as this month following consultations between the ruling party and the government.

During legislative discussions, an option has been floated to initially allow stablecoin issuance in the form of bank-led consortia. At the same time, it was reported that authorities are also reviewing a plan to set the cap on ownership stakes for major shareholders of virtual asset exchanges at 20% for individuals and up to 34% for corporations approved by the FSC.