Min Byung-deok, a Democratic Party lawmaker, stated on the 13th that concentrated discussions on the Digital Asset Basic Act are expected to begin as early as next week. Speaking at a Nexblock first-anniversary seminar held at the National Assembly Members' Office Building in Yeouido-dong, Yeongdeungpo-gu, Seoul, Min said the timing for intensive legislative review is anticipated around next week or the following week. The Digital Asset Basic Act represents the second stage of South Korea's virtual asset legislation, with lawmakers emphasizing the need to complete the law before the January 18, 2027 implementation of the U.S. GENIUS Act stablecoin regulation.
Min urged the industry to participate intensively in discussions over the next two months, stating the digital finance market represents a new growth sector for South Korea. He emphasized that both the ruling party, opposition party, and financial authorities agree legislation must be completed before January 18, 2027. Min described the incoming wave of dollar-based stablecoins as a "tsunami rather than a wave" following the GENIUS Act implementation.
Min Byung-deok Outlines Legislative Timeline Through January 9
Min provided a specific legislative schedule during his remarks on the 13th. He stated the temporary session will run until January 9, with January reserved as a recess period. To meet the January 9 deadline, Min said the subcommittee will convene approximately two times, with a public hearing scheduled between those sessions. The lawmaker characterized this two-month period as critical for finalizing the Digital Asset Basic Act framework.
Democratic Party Lawmaker Opposes Bank-Only Won-Stablecoin Issuance
Min expressed opposition to proposals limiting won-stablecoin issuance to consortiums where banks hold 50% plus one share. He stated, "We should pursue a behavior-based regulatory approach that gives opportunities to everyone, rather than entry barriers." Min advocated for allowing banks, bank-led consortiums, and non-bank consortiums to issue won-stablecoins, arguing that competition through this inclusive model can drive innovation in South Korea. The lawmaker framed his position as prioritizing market development over restrictive entry requirements.
Min Proposes Deferring Exchange Ownership Cap to Third-Stage Legislation
Regarding digital asset exchange ownership limits, Min suggested postponing the discussion to third-stage legislation rather than including it in the Digital Asset Basic Act. He stated, "We need to grow the market and expand the pie before dividing it. It's too early to divide something that hasn't grown yet, so my proposal is to address this in the third-stage law." Min characterized the ownership cap debate as premature given the current stage of market development, advocating for a phased legislative approach that prioritizes market expansion before implementing structural restrictions on exchange shareholders.
FAQ
When does Min Byung-deok expect Digital Asset Basic Act discussions to begin?
Min stated on the 13th that concentrated discussions are expected to begin as early as next week or the following week, with intensive review continuing for approximately two months until the January 9 deadline.
Why must South Korea's Digital Asset Basic Act be completed before January 18, 2027?
Min emphasized that legislation must be finalized before the January 18, 2027 implementation of the U.S. GENIUS Act, which regulates stablecoins. He warned that dollar-based stablecoins will arrive like a "tsunami" after the U.S. law takes effect, making timely domestic legislation critical.
What is Min Byung-deok's position on won-stablecoin issuance requirements?
Min opposes limiting won-stablecoin issuance to bank-led consortiums holding 50% plus one share. He advocates for a behavior-based regulatory approach that allows banks, bank consortiums, and non-bank consortiums to compete, stating this inclusive model can drive innovation in South Korea's digital finance market.
