South Korea Democratic Party Task Force to Launch Digital Asset Bill Talks After June 3 Elections

Kim Sang-hoon urged lawmakers to prioritize stablecoin legislation, warning that offshore won stablecoin issuance could weaken monetary sovereignty as debate grows over proposed exchange ownership caps.

Summary

South Korean lawmaker Kim Sang-hoon called on lawmakers to focus first on a stablecoin-centered digital asset law rather than advancing a proposal that would limit major shareholders in crypto exchanges to 15% to 20%. He argued that overseas issuance of the won-pegged stablecoin KRWQ poses a challenge to South Korea’s monetary sovereignty. Legal experts also said the proposed ownership cap could be unconstitutional. The comments add detail to an ongoing policy debate in South Korea, where the Democratic Party’s digital asset task force plans to begin formal talks on the Digital Asset Basic Act after the June 3 elections and has already opposed exchange ownership limits and a proposed 50% bank stake rule for won stablecoin alliances.

Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a fixed value, usually by being pegged to a fiat currency such as the South Korean won.
  • Digital Asset Basic Act: A proposed South Korean legal framework intended to establish core rules for digital asset regulation and related business activity.
  • Won stablecoin: A stablecoin pegged to the South Korean won for use in digital payments, trading, or other blockchain-based financial transactions.