South Korea Lawmaker Min Says Digital Asset Framework Act to Be Finished by Jan. 9

Rep. Min Byung-duk of South Korea’s Democratic Party said on Nov. 13 that the Digital Asset Framework Act, which would create a legal basis for won-backed stablecoins, would be completed by Jan. 9, 2027. The comment signals lawmakers aim to process the bill by the final National Assembly session before the U.S. GENIUS Act takes effect on Jan. 18, 2027.

At a National Assembly forum on the progress of digital-asset legislation and global trends, Min said the ruling party, the opposition and financial authorities all agree the measure should be handled before Jan. 18. He said the regular session will end and an extraordinary session is generally held through Jan. 9. During that period, lawmakers plan to hold the bill subcommittee once or twice and conduct a public hearing before wrapping up the legislation.

The GENIUS Act is a U.S. law enacted in July last year to regulate stablecoins at the federal level for the first time. Min reiterated that he wants to speed legislation for won-backed stablecoins, saying dollar-based stablecoins would surge in like a “tsunami” once the law takes effect.

Min also said intensive discussion of the Digital Asset Framework Act is likely to begin around the week after next, indirectly signaling when the government’s draft bill may be submitted. Financial authorities had originally planned to send the government proposal to the National Assembly last year. But debate over key issues, including ownership caps for major shareholders of virtual-asset exchanges and eligibility to issue stablecoins, dragged on, preventing the bill from being submitted until now.

As the process has stretched out, many of the bill’s main provisions are already widely known. Ownership by major shareholders in virtual-asset exchanges would likely be capped at 15% to 20%, while stablecoin issuers would likely be structured so banks in a consortium hold at least 50% plus one share.

Min said he questions whether a cap on major shareholders needs to be included in the framework law at this stage. He said the National Assembly Research Service has raised the view that such a restriction could be unconstitutional, and that further coordination among exchanges would also be needed.

His comments suggest that if the Financial Services Commission submits a bill including shareholder caps and lawmakers fail to reach agreement during deliberations, the provision could be stripped out. Min added that, in his view, the issue should be addressed in a third stage of legislation after the market grows further. The Digital Asset Framework Act is classified as second-stage legislation following the Virtual Asset User Protection Act, which took effect in 2024.

On the bank-centered consortium model, Min said that structure would not work given the number of other innovative companies in the market. He said non-bank consortiums should also be allowed so competition can drive market innovation.

The issue is likely to draw sharp debate in the National Assembly’s Political Affairs Committee. The Bank of Korea, which is responsible for won issuance, has consistently argued for a bank-centered consortium model during the drafting process. The Financial Services Commission has also said the door remains open for a technology company to become the largest shareholder if multiple banks combine their stakes to secure a majority.

Lee Si-eun, Hankyung.com reporter see@hankyung.com