"We Must Hurry to Institutionalize Stablecoins in Line with the GENIUS Act"

Securities and Financial Litigation Issues Symposium

Also Addressed: Issues of Using Non-public Information

"Since the United States and China are also organizing stablecoin frameworks at the national level, Korea must step forward now as well."

Kim Hong-gi, a professor at Yonsei University Law School who previously served as a judicial research officer at the Supreme Court (Judicial Research and Training Institute, class of 21), emphasized this at the 'Key Issues in Securities and Financial Litigation' symposium held on the 12th at the Seoul Southern District Court's main auditorium, saying, "The core philosophy of stablecoins is 'decentralization,' but in reality central government control is inevitable." The symposium was held after the National Policy Planning Committee on the 8th announced detailed implementation plans including a measure to grant the authority to issue won-denominated stablecoins to a consortium involving banks and non-banks. About 300 people from the legal community as well as the finance, securities, and virtual asset industries attended the event that day.

The discussion that day covered the legal issues of won-denominated stablecoins. Since the United States enacted the 'GENIUS Act' in July, including safeguards to ensure the reliability of stablecoins, and is moving toward institutionalization, it was argued that related legislation should be expedited domestically as well. Kim Yi-kyung, a lawyer at Kim & Chang (class of 36), argued, "If a won-denominated stablecoin is issued, there will be considerable demand in the Southeast Asian markets that have active exchanges with Korea," and added, "Related infrastructure must be promptly established to expand the domestic digital asset ecosystem."

The symposium also addressed criminal law issues related to 'use of material non-public information.' Presiding Judge Kim Sang-yeon (class of 29) of the Seoul Southern District Court, who handled the first trial in the case of a subsidiary employee who sold Hybe shares after learning in advance of BTS's military enlistment and resulting suspension of activities, spoke in person. Judge Kim pointed out, "Under the Capital Markets Act, even if one incurred a loss from using non-public information, it is subject to criminal punishment," and added, "Even if there was no intent to gain profit, the use of the information itself is a crime."

Yoon Kyung-ah, chief judge of the Seoul Southern District Court (class of 26), said, "I hope this symposium will serve as an opportunity to activate academic exchange between academia and practice and to understand each other's perspectives."

Reporter Hee-won Jeong tophee@hankyung.com