“Should Stablecoin Issuance Be Bank-Centered?” Criticism Draws Lee Eog-weon’s Response: “We’ve Prepared a Plan Balancing Innovation and Stability” [2026 National Assembly Audit]

Financial Services Commission Chairman Lee Eog-weon said the government had prepared a proposal that “balances innovation and stability” in response to criticism that it seeks to limit stablecoin issuers to bank-led consortia, adding that it would discuss the proposal thoroughly with the National Assembly.

Financial Services Commission Chairman Lee Eog-weon answers lawmakers' questions during a comprehensive parliamentary audit of the Financial Services Commission and other agencies at the National Assembly on Oct. 22, 2026. Photo by Yoon Dongju

At a comprehensive audit of the Financial Services Commission and the Financial Supervisory Service held by the National Assembly’s Political Affairs Committee on Oct. 22, Assemblyman Min Byeong-deok of the Democratic Party of Korea criticized delays in the second phase of virtual asset legislation, the Digital Asset Basic Act, and the concentration of stablecoin issuance authority among banks.

“When the Virtual Asset Committee under the Financial Services Commission was launched in November 2024, it said it would prepare the second-phase bill in the second half of last year,” Assemblyman Min said. “The Genius Act was passed in the United States in July last year, and Hong Kong’s law was passed in August last year. At this critical juncture, we did nothing.”

Regarding the government’s proposed Digital Asset Basic Act, he added: “When creating a new industry, isn’t the government allowing only bank-led consortia to issue stablecoins? Stablecoin stability depends on how safely the underlying assets are held. Where does the idea come from that a stablecoin is safe if issued by a bank but unsafe if issued by a non-bank?”

The Digital Asset Basic Act is a comprehensive bill covering the entire virtual asset ecosystem, including issuance, distribution and disclosure. Its passage has been delayed because no agreement has been reached on restrictions on major shareholders’ stakes in exchanges or on whether banks must hold a majority stake—at least 50% plus one share—in stablecoin issuers.

“We are communicating with the industry in various ways,” Chairman Lee said. “We have prepared a proposal on how to balance innovation and stability, so we will discuss it together.”

Asked whether the Bank of Korea, which differs in its views from the Financial Services Commission, should participate in the Virtual Asset Committee, Chairman Lee said: “We selected people from the private sector who hold a range of views, but I will give the matter further consideration.”

This content was produced with the assistance of AI translation services.