Yoo Dong-su Says Government Draft of Digital Asset Framework Act Coming Soon, Acknowledges Delay Concerns

Yoo Dong-su, chair of the National Assembly’s Political Affairs Committee, said he is aware of industry concerns over delays in legislating the Digital Asset Framework Act and expects the government’s draft bill to be released soon.

Speaking at a policy seminar on Nov. 5 at the National Assembly Members’ Office Building in Seoul’s Yeouido district to mark the publication of “The Future of Money, Stablecoin Revolution,” Yoo said he understands industry frustration over the slow progress of the bill and believes the government proposal will be unveiled shortly.

The Digital Asset Framework Act is intended to establish a regulatory framework for the digital-asset industry, including the issuance and distribution of stablecoins. Legislative discussions have been delayed, however, by differences over who should be allowed to issue stablecoins and how they should be supervised.

Yoo stressed that drafting the bill requires balancing financial stability with industry development. Handling money is one of the most difficult and specialized policy areas, he said. The hardest part of the legislation, he added, is harmonizing risk and expertise with regulation and industry growth.

He also raised the need to quickly institutionalize won-based stablecoins. With dollar-based stablecoins leading the global market, South Korea needs a response to protect its monetary sovereignty, he said.

He said a key challenge is whether the won’s share of the global currency market can be maintained in the digital-currency market as well.

Yoo added that he envisions a future in which stablecoins help South Korea, which he described as leading a second cultural revolution based on K-culture, expand globally. Stablecoins need to be written into law quickly, he said.

He also said South Korea should take into account monetary sovereignty issues arising from the spread of digital currencies while building an institutional foundation to strengthen the competitiveness of the domestic digital finance industry.