FSC Chief Says South Korea to Speed Talks on Digital Asset Framework Act Covering Stablecoins

Kim Byoung-hwan, chairman of South Korea’s Financial Services Commission, said the government will accelerate consultations on a draft Digital Asset Framework Act, the second phase of the country’s virtual-asset legislation that will include rules for stablecoins.

News1 reported on Aug. 24 that Kim made the remarks at a plenary meeting of the National Assembly’s Political Affairs Committee in Seoul’s Yeouido. Asked by Democratic Party lawmaker Lee Kang-il when the government would prepare its bill for the Digital Asset Framework Act, Kim said officials were preparing it and would step up full-scale consultations.

Lee said South Korea needs to move quickly on related legislation as the US rapidly advances digital-asset rulemaking and financial institutions push further into the market.

He said the US Securities and Exchange Commission is clarifying how securities laws apply by classifying digital assets into categories including commodities, securities and stablecoins. He also cited the Commodity Futures Trading Commission’s approval of perpetual futures tied to Bitcoin spot prices, and its position that certain digital assets and stablecoins that meet set requirements can be used as margin collateral in futures trading.

“The digital-asset market has moved beyond simple coin trading and into the financial system,” Lee said. “The National Assembly has introduced the Digital Asset Framework Act and discussions are under way, but the government’s bill still has not been submitted.”

When Lee again asked when the government would submit its proposal, saying the legislative process should now be wrapped up, Kim said he would move to speed consultations.

After Lee said the bill should not slip into next year and asked whether the government could submit its proposal in time for legislation this fall, Kim said he would do his best.