Key Takeaways:
South Korea risks leaving stablecoin issuers without clear rules as lawmakers debate a bank-led ownership model.
South Korea should introduce interim stablecoin licensing guidance before completing its Digital Asset Basic Act, according to a policy report published July 29 by Hashed Open Research and the Solana Policy Institute.
"Policymakers are considering a compromise under which banks would retain majority ownership while fintech and non-bank firms managed operations," Democratic Party lawmaker Ahn Dogeol said at a June 23 symposium summarized in the report.
The Financial Services Commission plans to combine 10 pending digital asset and stablecoin proposals into one government-backed bill during 2026, the regulator told the National Assembly on July 29. South Korea's existing Virtual Asset User Protection Act covers only custody, unfair trading and customer safeguards — leaving rules for stablecoin issuance and market structure unresolved.
Without interim guidance, businesses issuing or using won-backed stablecoins face regulatory uncertainty that could slow adoption in one of the world's largest crypto markets, the report said. The Bank of Korea supports a bank-led model, citing concerns that easier conversion between the won and dollar stablecoins could complicate capital flow management.
Kim Hyobong, a partner at Bae, Kim & Lee, urged South Korea to follow the European Union's phased approach under the Markets in Crypto-Assets Regulation, which applied stablecoin rules starting June 30, 2024 — six months before the rest of the framework took effect. "South Korea should clarify which crypto activities financial institutions may conduct, resolve licensing uncertainty for stablecoin payments and set rules for foreign-issued stablecoins," Kim said.
One ownership structure under discussion would give banks more than 50% of a stablecoin issuer, with a fintech company holding 34% along with management rights, according to the report. Supporters say the model combines bank oversight with technology expertise, while critics argue strict bank control could limit competition.
The report also raises questions about whether overseas stablecoin issuers should need a local branch, meet reserve standards or obtain domestic approval before offering tokens to South Korean users. These details remain unsettled and are not current legal requirements.
South Korea's wider digital asset roadmap 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 for the combined bill.
This article is for informational purposes only and does not constitute investment advice.
