South Korea's "Basic Law on Digital Assets": The issuing entities of stablecoins will be limited to "consortia with 51% bank ownership" as the dominant direction

According to News1, during the process of advancing the second phase of legislation on digital assets (virtual assets) in South Korea, the "Basic Law on Digital Assets," the issuance of stablecoins will be limited to "consortia with 51% bank ownership," which has become the leading direction.

The currently discussed proposal is to grant the right to issue stablecoins to consortia with 51% bank ownership. The digital asset special task force (TF) within the Democratic Party has also basically confirmed the adoption of this proposal. Previously, regarding the issue of stablecoin issuance entities, the Bank of Korea argued that it should be led by banks and limited to the banking system; while some members of the National Assembly believed it should be open to fintech companies and blockchain enterprises. The government version of the bill is required to be submitted by the 10th of this month at the latest, with the goal of starting discussions within the year and completing legislation by January next year.