South Korea debates conduct-based digital-asset rules with industry input

  • Joseph Chalom, Min Byoung-dug and Harry Jung urged South Korea to combine conduct-based digital-asset rules with industry consultation.
  • Proposals under debate include banks holding 50% plus one share of won-stablecoin issuers and exchange shareholder caps of about 15% to 20%.
  • The GENIUS Act is due to bring dollar-pegged digital payment instruments into regulation on Jan. 18 next year as Seoul works on its framework act.

South Korea should accelerate a comprehensive digital-assets framework while incorporating industry perspectives, SharpLink CEO Joseph Chalom, Democratic Party lawmaker Min Byoung-dug and former White House Digital Asset Advisory Committee deputy director Harry Jung said in separate discussions. Chalom opposed proposed requirements for banks to hold more than 50% of won-based stablecoin issuers and for major crypto-exchange shareholders to face ownership caps of about 15% to 20%, arguing that rules should focus on know-your-customer controls, sanctions compliance, market surveillance, reserve quality, transparency and redemption capacity. Jung said regulators need a strong understanding of the digital-asset ecosystem and should use private-sector feedback during rulemaking. The discussion comes as the United States prepares to bring dollar-pegged digital payment and settlement instruments into the regulated system under the GENIUS Act on Jan. 18 next year. Min is targeting passage of a basic digital-assets framework act by early January next year and has warned that taxation before a framework is established is premature.

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