South Korean crypto industry leaders are raising concerns over the Basic Digital Asset Act, a draft bill aiming to regulate the stablecoin sector. Lawmaker Min Byung-deok's proposed legislation would require domestic stablecoin issuers to obtain approval from the Financial Services Commission before issuance.

Industry experts argue that the bill's provisions are unfair and ineffective. They argue the regulations would create an uneven playing field, exempting foreign stablecoins like Tether (USDT) from scrutiny while South Korean firms face stricter rules.

According to one anonymous source, 'It is unfair that foreign companies can operate unhindered while local businesses face these regulations.' The bill also proposes the creation of a self-regulatory body to oversee stablecoins and cryptoassets in South Korea.

Critics argue the approach ignores South Korea's unique market, with one insider noting it is 'effectively limited to the USDT market.' They believe a tailored, gradual regulatory system would be more appropriate for the domestic market.

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