South Korea's Ruling Party Hosts Legislative Forum on Stablecoins, Eyes Global Compatibility

SEOUL, May 20 (TokenPost) – South Korea’s ruling Democratic Party held a legislative forum at the National Assembly on Monday to examine global regulatory trends for digital assets and stablecoins, inviting international experts to share insights from the U.S. and Europe.

The event, titled “Global Legislative Trends and Korea’s Future,” was convened by Congressman Byung-kee Kim and focused on preparing a legal framework for stablecoins ahead of the country’s upcoming presidential election on June 3.

Sérgio Mello, Head of Stablecoins at Anchorage Digital, warned against replicating the European Union’s MiCA (Markets in Crypto-Assets) regulatory framework, arguing that its rigid reserve requirements and lack of global interoperability have stifled market growth.

“Liquidity is more critical than legal form,” Mello said. “The EU mandated cash-only reserves, but that limited flexibility. In contrast, U.S. regulators have allowed issuers to include U.S. Treasuries in their backing, which enhances credibility and adoption.”

Andres Kim, LATAM expansion manager at Tether, highlighted South Korea’s global cultural reach and rapidly advancing fintech infrastructure as a strong foundation for a Korean won-backed stablecoin. “Latin America is hungry for K-products. A Korea-originated stablecoin could power cross-border e-commerce tied to K-pop and K-beauty,” Kim noted.

The forum also addressed the potential legalization of crypto-based exchange-traded funds (ETFs). Andrew Crawford, Vice Chair of Digital Assets at Franklin Templeton, emphasized the importance of transparency and investor protection through mandatory disclosures and KYC (Know Your Customer) protocols.

Rep. Kim stated, “Digital assets are no longer optional. They are reshaping the global financial order. Korea must proactively design its own standards rather than follow others.”

South Korea’s Democratic Party is currently drafting a two-tier Digital Asset Basic Act, which would distinguish general digital assets from stablecoins and require pre-approval for stablecoin issuance based on reserve strength and issuer credibility.

The country is home to over 16 million digital asset investors, making it one of the most active markets globally.