South Korea's "stablecoin bill" is expected to be delayed for deliberation until after the June general election! Democratic Party lawmaker: Optimistic that the legislation will eventually pass.

Kim Hyun-jung, a member of the Democratic Party of Korea's Digital Asset Task Force, stated today (22nd) that due to the war between the US and Iran and domestic local elections, the second phase of the "Digital Asset Basic Act," which covers stablecoin regulation, is expected to be officially submitted for deliberation after the elections in June. Kim revealed that the new Bank of Korea (BOK) Governor Shin Hyun-song holds a positive attitude toward stablecoins, and both sides plan to meet after the elections to advance the legislation. In addition, issues such as shareholding restrictions for exchanges still require further consultation within the party and government. (Previous coverage: Bank of Korea takes action: Mandatory circuit breakers for crypto exchanges to prevent a repeat of the $42 billion Bithumb Bitcoin error) (Background supplement: Circle CEO states: No KRW stablecoin issuance, but ready to provide "issuance technology" for South Korea) South Korea's second-phase regulatory framework for the cryptocurrency market is adjusting its pace due to drastic changes in the domestic and international political and economic landscape. Kim Hyun-jung, a member of the Democratic Party of Korea's Digital Asset Task Force (TF) and a member of the National Policy Committee, revealed in an interview at the National Assembly Members' Office Building on the morning of the 22nd that the highly anticipated second phase of the "Digital Asset Basic Act" (centered on stablecoin regulation) is expected to be delayed until after the local elections in June for formal submission. The "Digital Asset Basic Act" is regarded as the "Digital Asset Constitution" of the South Korean crypto market. Its content covers the entire ecosystem, including the issuance, circulation, information disclosure, and listing of virtual assets, aiming to eliminate market uncertainty for millions of South Korean investors. In fact, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol and the Financial Services Commission (FSC) had already reported the first-quarter policy plan to President Lee Jae-myung on January 9 this year, which included the "establishment of a stablecoin regulatory system." However, Kim Hyun-jung pointed out that due to the outbreak of war between the US and Iran on February 28 and the approaching local elections, party-government consultation meetings had to be repeatedly postponed: "Since we have entered the election season, it seems we must wait until after the local elections to proceed. The bill subcommittee is also expected to convene at that time." Despite the delay in the legislative process, Kim Hyun-jung remains highly confident that the bill will eventually pass, drawing confidence from the positive stance of the new Bank of Korea (BOK) Governor, Shin Hyun-song. During his confirmation hearing on the 15th, Shin Hyun-song clearly stated: "Central Bank Digital Currencies (CBDC) and stablecoins can establish a complementary and competitive coexistence." In this regard, Kim Hyun-jung emphasized: "Since the new BOK Governor has expressed a positive view on stablecoins, (although there is a delay, ultimately) stablecoin legislation will definitely be realized." He further revealed that the Democratic Party's TF plans to arrange a meeting with Governor Shin after the local elections, depending on the situation, to directly discuss relevant policy details. Although the general direction is set, some sensitive issues in the bill have yet to reach a consensus. Regarding controversial clauses such as "bank-led consortia must hold 50%+1 of shares" and "equity regulation for large crypto asset exchanges like Dunamu (Upbit's parent company), Bithumb, Coinone, and Korbit," Kim Hyun-jung admitted: "There is no 100% consensus within the party and government yet, and further discussion is needed." On the same day, at the "Academic Seminar on the Evolution of Digital Asset Crime and Financial Market Response Strategies" held at the National Assembly, Kim Hyun-jung called on the government to accelerate its pace. He emphasized that the introduction of CBDC and the issuance of a "KRW stablecoin" have become realistic policy issues, and the nation must take three major actions: - Preemptive institutional reorganization for CBDC and KRW stablecoins. - Ensuring the integration of the domestic tax system with international regulatory standards. - Substantially strengthening infrastructure to combat digital asset crime.