South Korea digital asset bill stalls over stablecoin oversight

South Korea’s government has spent weeks in talks with the National Assembly to introduce a basic law on digital assets, but discussions have hit difficulties amid differences over the stablecoin oversight framework and limits on major shareholders’ stakes in virtual asset exchanges, Chosun Biz reported. According to the report, lawmakers are particularly concerned about the management and supervisory framework after stablecoins are issued. Previous discussions on the bill had focused on who would be allowed to issue stablecoins and what level of reserve assets and prudential requirements issuers should face. Concerns have since emerged that relatively little discussion has addressed how to monitor and control the risk of stablecoins being used for money laundering or illegal transactions once they are in actual circulation. South Korea’s Financial Services Commission plans to submit the government’s proposal to the National Assembly this month, but the actual timing of the bill’s introduction remains unclear as key issues have yet to be resolved.