FSC chief says final consultations underway on digital asset framework law

Financial Services Commission Chairman Lee Eok-won said Thursday that inter-agency consultations on enacting a basic digital asset law are in their final stages.

Speaking at the opening of a national audit by the National Assembly's Political Affairs Committee, Lee said he would "make every effort to ensure that legislation to build a sound digital asset ecosystem can be advanced as quickly as possible."

When Democratic Party of Korea lawmaker Lee Gang-il pressed for faster progress on institutionalizing digital assets, FSC Chairman Lee said the relevant groundwork had already been laid. "We are in the final stages of consultation and will move quickly to wrap it up," he said.

Lawmaker Lee cited the United States' GENIUS Act and the EU's Markets in Crypto-Assets regulation, known as MiCA, arguing that South Korea is falling behind in establishing a domestic digital asset framework.

He particularly flagged the fact that foreign stablecoins are already circulating in the domestic market while the issuing authority for a won-denominated stablecoin has yet to be determined.

The lawmaker presented data showing that domestic trading volume in dollar-denominated stablecoins exceeded 6 trillion won ($4.48 billion) in June alone, with cumulative volume through July this year reaching 80 trillion won. He also noted that 54 percent of all trading in yen-denominated stablecoins listed domestically originates from the South Korean market.

Lawmaker Lee also asked what measures were being taken to address the growing market dominance of platform companies.

He raised concerns that a combination of Naver Financial and Upbit could significantly expand their market power, and asked whether safeguards were being put in place to ensure stable market operations. He also called for a response to the risk of monopolization in small-business finance and the fintech market, warning that Toss could use its push to dominate stablecoin payment networks as a pretext to expand its payments and lending businesses.

When asked about the types of won-denominated stablecoins under consideration and plans for operating a virtual asset business license regime, FSC Chairman Lee said those were matters "to be handled as policy, taking into account market conditions and other factors."

He added that he would "work to firmly establish a range of measures that allow us to keep pace with global trends while proceeding safely and soundly."