TLDR
- South Korea may introduce stablecoin rules before completing its Digital Asset Basic Act.
- The FSC plans to merge about 10 crypto and stablecoin bills into one framework.
- The Digital Asset Basic Act is expected to cover issuance, disclosures, and market rules.
- Lawmakers are considering a bank-led model for Korean won-backed stablecoins.
- South Korea plans a 2027 tokenized bond pilot with the Bank of Korea’s wholesale CBDC.
South Korea should introduce stablecoin rules before completing its wider Digital Asset Basic Act, a new policy report said, as regulators work to merge several crypto bills into one framework.
The report was published by Hashed Open Research and the Solana Policy Institute. It summarized a June 23 symposium attended by lawmakers, legal experts, and industry participants.
Report Calls for Interim Stablecoin Guidance
The report said South Korea should give stablecoin issuers more flexibility while lawmakers complete the country’s first broad digital asset law. It also called for interim licensing guidance to reduce uncertainty for firms building payment and settlement products.
The Digital Asset Basic Act is expected to cover stablecoins, token issuance, disclosures, market rules, and investor protection. However, lawmakers have not yet reconciled several pending bills, with stablecoin issuance rules remaining one of the main unresolved issues.
Democratic Party lawmaker Ahn Dogeol said policymakers were considering a compromise model. Under that approach, banks would keep majority ownership while fintech and non-bank firms manage stablecoin operations.
Kim Hyobong, a partner at Bae, Kim & Lee, said South Korea should clarify which crypto activities financial institutions can conduct. He also called for rules covering stablecoin payments and foreign-issued stablecoins.
FSC Moves to Merge Crypto Bills
South Korea’s Financial Services Commission is preparing a unified digital asset bill for the National Assembly’s Political Affairs Committee. The regulator aims to complete the framework before the end of 2026.
The FSC’s plan would combine around 10 digital asset and stablecoin bills now pending in the National Assembly. The merged framework is expected to define digital asset businesses and establish rules for issuance, distribution, disclosures, and market conduct.
The bill is also expected to add exchange entry requirements, internal control standards, and IT security rules. These rules would bring crypto firms closer to financial institution standards.
FSC officials said the framework should support innovation while protecting financial stability. The government has also linked the plan to stronger anti-money laundering controls for digital asset activity.
Yoo Young-jun, Director General of Digital Finance Policy at the FSC, said, “We are currently consulting with relevant agencies with the goal of completing legislation on virtual assets as soon as possible.”
He added that the commission would “promptly finalize legislation on stablecoins as soon as possible.” The remarks showed stablecoins remain a priority inside the wider crypto rulemaking process.
Stablecoin Ownership and Corporate Access Remain Unresolved
Several policy questions remain before the draft can move forward. Regulators have not decided whether won-backed stablecoins should follow a bank-led consortium model under a proposed 51% ownership rule.
Authorities are also considering whether 15% to 20% equity ownership limits should apply to major local exchanges. The review could affect Dunamu, Bithumb, Coinone, Korbit, and Gopax.
The FSC is also reviewing guidelines to expand corporate participation in South Korea’s crypto market. Financial institutions have faced broad limits on crypto participation since 2017.
Kim Seong-jin, head of the FSC’s Virtual Assets Division, said the commission is “making great efforts to expedite” the Digital Asset Framework Act. On corporate market access, he said authorities are “continuously discussing the guidelines.”
South Korea is also preparing a 2027 pilot linking tokenized government bonds with the Bank of Korea’s wholesale CBDC platform. That project forms part of a wider plan to modernize financial markets through blockchain infrastructure.
Committee Chairman Yoo Dong-soo said lawmakers agreed to hold the first and second subcommittees twice a month. The schedule could help speed up review once the government’s final draft reaches the National Assembly.
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