TLDR
- A new policy report urges South Korea to issue interim stablecoin licensing guidance before the Digital Asset Basic Act is finished.
- Lawmakers are discussing a compromise where banks keep majority ownership of stablecoin issuers while fintech firms handle daily operations.
- The Bank of Korea favors a bank-led model for stablecoin issuance, citing monetary and financial stability concerns.
- The Financial Services Commission plans to combine ten pending digital asset proposals into one government-backed bill during 2026.
- The report also calls for clear rules covering foreign-issued stablecoins offered to Korean users.
South Korea may introduce stablecoin rules before finishing its full digital asset law. This comes from a policy report published July 29 by Hashed Open Research and the Solana Policy Institute.
The report summarizes a June 23 symposium. Lawmakers, lawyers and industry representatives took part in the discussion.
It recommends a phased approach. This means interim guidance on licensing and payments while lawmakers keep working on a full market framework.
The recommendations are advisory only. They do not change any current law in South Korea.
Stablecoin Rules Could Arrive in Stages
Waiting for the complete Digital Asset Basic Act could leave businesses without clear rules. Companies issuing or using won-backed stablecoins need guidance sooner, the report says.
Bae, Kim & Lee partner Kim Hyo-bong pointed to the European Union as an example. The EU’s Markets in Crypto-Assets Regulation applied stablecoin rules starting June 30, 2024, six months before the rest of the framework kicked in.
That timeline supports the idea of rolling out stablecoin rules first. The rest of the crypto framework could follow later.
Bank Ownership Remains a Sticking Point
Democratic Party lawmaker Ahn Do-geol described a possible compromise. Banks would hold majority ownership of stablecoin issuers, while fintech partners would manage daily operations.
One structure under discussion would give banks more than 50% ownership. A fintech company could hold 34% along with management rights.
Supporters say this mixes bank oversight with tech expertise. Critics worry that strict bank control could limit competition in the space.
The Bank of Korea supports the bank-led approach. Officials have said easier conversion between the won and U.S. dollar stablecoins could complicate how they manage capital flows.
The Financial Services Commission told the National Assembly on July 29 that it plans to prepare one consolidated bill with the ruling Democratic Party. Ten separate digital asset and stablecoin proposals are currently pending.
No filing date or final wording has been announced yet. The regulator has not said when the combined bill will be ready.
The planned framework would cover stablecoin issuance, exchange conduct, disclosures, internal controls and system resilience. South Korea’s existing Virtual Asset User Protection Act only covers custody, unfair trading and customer safeguards right now.
That means rules for issuers and market structure are still missing. The report says this is the gap lawmakers need to fill next.
The report also raises questions about foreign stablecoins. It asks whether overseas issuers should need a local branch, meet reserve standards or get domestic approval before offering tokens to Korean users.
These details remain unsettled. The report’s suggestions are not current legal requirements.
South Korea has also outlined a wider roadmap. This includes foreign-exchange reforms, central bank digital currency pilots and tokenized government bonds alongside the stablecoin plan.
No parliamentary vote or implementation deadline has been set. The Financial Services Commission has confirmed only that it aims to combine the ten pending proposals into a government-backed bill sometime in 2026.
