South Korea’s Democratic Party is preparing to submit a party-led version of the Digital Asset Basic Act, signaling a decisive move to shape the country’s crypto policy after failing to reach consensus with key financial authorities.
Party Pushes Ahead After Regulatory Deadlock
The Democratic Party plans to introduce the bill early next month, following prolonged disagreements with the Bank of Korea and the Financial Services Commission (FSC). At the heart of the dispute is how South Korea should regulate digital assets-particularly the issuance of won-pegged stablecoins, which the party views as essential to maintaining monetary relevance in a rapidly digitizing global economy.
While the government proposed competing models for stablecoin issuance-one requiring unanimous approval from a regulatory body, and another mandating issuance by a bank-led consortium with a majority stake-the Democratic Party has struggled to align these ideas into a single framework.
Task Force Debates Integrated Crypto Framework
On Tuesday, the party’s Digital Asset Task Force (TF) convened a closed-door meeting at the National Assembly to debate an integrated version of the Digital Asset Basic Act. The bill aims to establish a comprehensive regulatory structure for digital assets, covering issuance, oversight, and market stability.
However, lawmakers acknowledge the road ahead is uncertain. According to Maeil Business Newspaper, the bill will require consensus between ruling and opposition parties, especially since the political affairs committee remains under opposition control and the government’s position differs in key areas.
Timeline Remains Unclear
Task Force Secretary Ahn Do-geol said that progress is possible if negotiations with the government and ruling party yield compromise. TF Chair Lee Jeong-mun, however, cautioned that the legislative schedule remains fluid, citing unresolved disputes between the executive branch and lawmakers.
Lee confirmed that the Democratic Party is drafting its own standalone bill through its Policy Council of Lawmakers. Once finalized, the party plans to enter high-level consultations with the government in an effort to bridge remaining gaps.
Frustration Over Government Delays
In a briefing following the meeting, Lee revealed that the government had been asked to submit a formal proposal as far back as October, yet no concrete response had arrived by the end of January. Even if a bill subcommittee is formed in February, Lee said it remains unclear how many sessions will be required to complete the process.
Ahn added that TF members will reconvene next week to consolidate key issues, with the goal of establishing the party’s official position by the end of January before reporting to senior party leadership.
Stablecoins Take Center Stage
A major focus of the discussions was the creation of an “integrated legislation” that would regulate both non-security digital assets and stablecoins under a single legal framework. Ahn described this approach as the most efficient way to cover the entire digital asset ecosystem, while acknowledging that stablecoins could be addressed separately if time constraints slow broader negotiations.
TF members emphasized a desire to “support the industry”, allowing both corporations and banks to participate in stablecoin issuance. At the same time, lawmakers stressed the importance of financial system stability, signaling that safeguards would remain central to the bill.
Korea Follows a Global Trend
South Korea’s push comes amid a global regulatory wave targeting stablecoins. Japan has already implemented a registration regime for stablecoin issuers, while the European Union’s Markets in Crypto-Assets (MiCA) framework provides a comprehensive regional model.
As global stablecoin adoption accelerates, South Korean lawmakers appear determined to avoid regulatory paralysis. Whether the Democratic Party’s bill becomes law remains uncertain, but its move signals growing urgency to define Korea’s place in the evolving digital asset economy.
