South Korea's Democratic Party Plans to Introduce Stablecoin Legislation After June Elections

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On April 22, Edaily reported that Kim Hyun-jung, a member of the Democratic Party’s special task force on digital assets, stated that a basic law on digital assets related to stablecoins (Phase II legislation) will be submitted after the local elections in June. A subcommittee for the bill will also be convened at that time. Kim pointed out that disputes regarding shareholder restrictions for major shareholders of exchanges have not yet been fully resolved and require further discussion. However, given the new positive stance of the Bank of Korea’s Governor Shin Hyun-sung towards stablecoins, he believes that stablecoin legislation will ultimately be passed. The Democratic Party’s special task force on digital assets is considering meeting with Shin Hyun-sung after the local elections. Kim also emphasized the need to improve the relevant systems for CBDC and the Korean won stablecoin in advance, ensuring tax systems are consistent with international regulations, and effectively strengthening the infrastructure to combat digital asset crimes.

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