Stablecoin Legislation Gains Momentum as Related Stocks Surge
South Korea's parliament is stepping up efforts to establish a legal framework for the introduction of won-denominated stablecoins, with the government and ruling party aiming to pass the second phase of legislation under the Digital Asset Basic Act by the end of this year. The push comes ahead of t
South Korea's parliament is intensifying its efforts to create a legal framework for won-denominated stablecoins, with the goal of passing the second phase of legislation under the Digital Asset Basic Act by year-end. This move aims to bolster the country's position in the global digital asset market ahead of the United States' GENIUS Act implementation in 2027.
The push is driven by concerns over the dominance of dollar-denominated stablecoins, which account for 99.4% of the total market capitalization. Rep. Min Byung-duk of the ruling Democratic Party stated that the legislation is expected to pass during the second half of this year. The introduction of won-denominated stablecoins could potentially save companies and households 1.7 trillion won annually.
The debate centers around the structure of entities allowed to issue stablecoins, with proposals ranging from a 51% bank stake to a combination of bank and fintech stakes. The government and ruling party are expected to introduce an integrated bill next month, with the Financial Services Commission set to attend a full committee meeting on Aug. 24 to discuss related issues.
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