Issuers of won stablecoins... South Korea at a loss

Japan allows banks, money transfer operators, etc.

In the U.S., non-financial entities can also issue

In South Korea, ahead of the institutionalization of won stablecoins, debate continues over how far issuers should be permitted.

On the 16th, according to the financial sector, the Financial Services Commission is preparing a second-phase virtual asset bill that includes regulations for won stablecoins, aiming to submit it to the National Assembly next month. In the National Assembly, Min Byung-deok, Ahn Do-geol and Kim Hyun-jung of the Democratic Party and Kim Eun-hye of the People Power Party have each introduced related bills.

The Bank of Korea and others hold the view that issuers should initially be limited to banks. Lee Chang-yong, governor of the Bank of Korea, said at the National Assembly last month, "(If issuance of won stablecoins) is allowed to non-banks, unexpected changes could occur to the existing bank-centered financial structure." On the other hand, there are also arguments that various businesses should be able to participate to boost global competitiveness and avoid stifling innovation.

Abroad, the permitted scope differs by country. The U.S. 'Genius' bill included non-financial entities among stablecoin issuers. Japan defines stablecoins as electronic payment instruments and limits issuers to banks, money transfer operators, trust companies, etc.

Lee Eok-yeon, chair of the Financial Services Commission, replied at the parliamentary confirmation hearing on the 2nd that "(regarding stablecoins) sufficient and certain safeguards are being prepared."

Reporter Shin Yeon-su sys@hankyung.com