South Korea Divided on Stablecoin Regulation: Two Opposing Bills Proposed

South Korea is witnessing a heated debate over stablecoin regulation as both the ruling and opposition parties have submitted separate bills, highlighting the differences in their approaches to this digital asset. #Korea

Conflicts over Interest Rates and Control

Democratic Party Bill: Proposed by Congressman Ahn Do-geol, this bill introduces stricter regulations requiring stablecoin issuers to be approved by the Financial Services Commission and maintain a minimum capital of 3.6 million USD. Notably, this bill explicitly prohibits paying interest rates over #stablecoin and requires that reserve assets be 100% backed by cash, deposits, or government bonds.

National Power Party Bill: Submitted by Congressman Kim Eun-hye, this bill focuses on licensing requirements and disclosure obligations, aiming to "promote innovation in digital asset payments" and "enhance market reliability." This bill does not mention a ban on paying interest rates.

Both bills grant emergency powers to financial regulatory agencies, allowing the Bank of Korea to request data and conduct audits. This division occurs against the backdrop of President Lee Jae-myung pushing a crypto-friendly agenda. Experts argue that South Korea needs a balanced approach to protect consumers while not stifling innovation, helping the country compete in the global digital asset market. #anhbacong