Democratic Party to Propose Digital Asset Basic Act This Week... "Stablecoin Licensing 5 Billion Won, Draft Likely to Be Maintained"

The Democratic Party is reportedly planning to propose the 'Digital Asset Basic Act', a key legislation for the institutionalization of virtual assets (cryptocurrency), to the National Assembly this week.

According to industry sources on the 18th, a representative from the office of Min Byung-deok, chairman of the Digital Asset Committee under the Democratic Party's election campaign headquarters, stated, "The draft bill has already been prepared, and after internal feedback, we plan to propose it this week," adding, "Most provisions are similar to the draft released last month, and we are gathering final opinions to maintain the stablecoin capital requirements in a broad framework."

This bill is expected to be the first comprehensive law that clarifies the legal status of digital assets and regulates the entire process from issuance to distribution and listing. It is also anticipated that the capital requirements for stablecoins will be maintained at the draft level. Additionally, the bill defines digital assets as 'electronic records with economic value based on blockchain' and further specifies regulations by industry, including issuers, exchanges, and custodians. It is also reported to include the allowance of ICOs (Initial Coin Offerings), the establishment of a Digital Asset Committee, and the installation of a Listing Review Committee.

In particular, the Digital Asset Committee is designed as an independent body under the Financial Services Commission, responsible for system design, policy review, and market monitoring. The Listing Review Committee will be established within the Digital Asset Industry Association to unify exchange listing standards.

The issuance requirements for won-linked stablecoins, a key issue, are also expected to be maintained at the draft level. This provision defines stablecoins as 'currency-like digital assets' and requires prior approval from the Financial Services Commission and a minimum reserve of 5 billion won. Other requirements include real-time disclosure of reserves, safe asset custody, and quarterly disclosures.

The Democratic Party plans to position this bill as a core part of its virtual asset pledge and expand its policy platform centered around the Digital Asset Committee. The bill is expected to begin full-scale discussions centered around the Political Affairs Committee after next month.