Regulatory Policy
South Korea Considers Interim Stablecoin Licensing Amid Crypto Law Delay (not officially confirmed)
A policy report published by Hashed Open Research and the Solana Policy Institute, as covered by crypto.news, recommends that South Korea introduce interim stablecoin licensing and phased regulatory guidance before lawmakers finalize the Digital Asset Basic Act. The report, which is not officially confirmed, urges a staged approach to stablecoin rules, addressing issuance, payments, and foreign tokens. It also discusses ongoing debates about bank ownership and fintech management, as well as the consolidation of ten pending proposals into a single government-backed bill. These recommendations reflect symposium participants’ views and do not constitute current law or official policy.
Background: Regulatory Delay and Industry Uncertainty
South Korea’s digital asset sector has been awaiting comprehensive regulation through the Digital Asset Basic Act, but legislative progress has been slow. According to a policy report published by Hashed Open Research and the Solana Policy Institute, as covered by crypto.news, the lack of clear rules for stablecoin issuance and use has created uncertainty for businesses and users. The report, which is not officially confirmed, summarizes discussions from a June 23 symposium attended by lawmakers, lawyers, and industry representatives. It highlights the need for interim guidance to address regulatory gaps while the broader framework is negotiated.
The current regulatory environment in South Korea is shaped by the Virtual Asset User Protection Act, which primarily governs custody, unfair trading, and customer safeguards. However, this law does not address stablecoin issuer eligibility, market structure, or payment services in detail. As a result, stablecoin issuers and exchanges face ambiguity regarding permitted activities and compliance requirements. The policy report’s recommendations aim to provide a temporary solution, but they remain advisory and have not been adopted as law.
Interim Stablecoin Licensing: Advisory Recommendations
The policy report recommends that South Korea introduce interim licensing guidance for stablecoin issuers, allowing regulated firms to prepare for eventual compliance with the Digital Asset Basic Act. This staged approach would address stablecoin issuance, payment services, and the handling of foreign tokens. The report draws parallels with the European Union’s Markets in Crypto-Assets Regulation (MiCA), where stablecoin provisions were implemented before the full framework became applicable. However, these recommendations are not officially confirmed and do not alter current legal requirements.
By proposing interim rules, the report seeks to reduce uncertainty for businesses operating in the stablecoin sector. It suggests that clear licensing, permitted activities, and payment service guidelines could help regulated entities adapt to evolving regulations. Nevertheless, the recommendations reflect the views of symposium participants and do not constitute government policy. Until lawmakers act, stablecoin issuers and users must continue to comply with existing laws and await further legislative developments.
Bank Ownership Versus Fintech Management: Ongoing Debate
A central issue discussed in the policy report is the ownership and management structure of stablecoin issuers. Democratic Party lawmaker Ahn Do-geol publicly mentioned a possible compromise where banks would retain majority ownership, while fintech or non-bank partners would manage operations. This model, which has not been officially adopted, proposes banks owning more than 50% of an issuer, with fintech companies holding up to 34% and management rights. Supporters argue that this structure could combine bank oversight with technical expertise, but critics warn it may restrict competition.
The Bank of Korea has expressed support for a bank-led approach, citing concerns about monetary policy, foreign exchange, and financial stability. Central bank officials have warned that easier conversion between won-backed and U.S. dollar stablecoins could complicate capital flow management. The debate over ownership and management remains unresolved, and no official decision has been made. These discussions are part of ongoing negotiations and do not represent current law or regulatory practice.
Consolidation of Proposals: Toward a Unified Bill
The Financial Services Commission (FSC) informed the National Assembly that it plans to consolidate ten pending digital asset and stablecoin proposals into a single government-backed bill during 2026 negotiations. This unified framework is expected to cover stablecoin issuance, circulation, exchange conduct, disclosures, internal controls, and system resilience. However, the regulator has not announced a filing date or finalized the bill’s wording, and no parliamentary vote or implementation deadline has been set.
The policy report also recommends that lawmakers look beyond issuer eligibility, addressing payment networks, public blockchains, tokenized assets, and links between traditional markets and decentralized finance. These broader recommendations reflect the views of symposium participants and are not binding. Until the bill is formally introduced and enacted, the digital asset industry must operate under existing regulations, with uncertainty about future requirements.
Foreign Stablecoins and Financial Institutions: Unsettled Issues
The policy report calls for clearer definitions regarding which digital asset activities banks and financial institutions may conduct. It also urges explicit licensing treatment for stablecoin payments and rules for foreign-issued tokens offered to Korean users. Key policy questions include whether overseas issuers must establish a local branch, meet reserve and custody standards, or obtain domestic approval. These details remain unsettled, and the report’s recommendations should not be interpreted as current legal requirements.
South Korea has outlined a broader roadmap for won-backed stablecoins, foreign exchange reforms, central bank digital currency pilots, and tokenized government bonds. The FSC’s intention to combine ten proposals into a government-backed bill reflects ongoing efforts to clarify regulatory treatment for both domestic and foreign stablecoins. However, the lack of official confirmation means that businesses and users must continue to operate under existing rules, with no immediate change to their obligations.
Market Impact and User Guidance
No verified crypto-market movement has been directly linked to the publication of the policy report. The recommendations are advisory and do not constitute binding law or regulatory change. Stablecoin issuers, exchanges, and users in South Korea must continue to comply with the Virtual Asset User Protection Act and other existing regulations. Industry participants should monitor legislative developments and engage with legal advisors to stay informed about potential changes.
The ongoing negotiations and policy discussions signal that regulatory clarity for stablecoins may eventually improve, but until official confirmation and enactment, uncertainty persists. Users and businesses should avoid making operational changes based solely on the reported recommendations. Instead, they are advised to prepare for possible future requirements by maintaining robust compliance practices and participating in industry dialogue.
Cexvia conclusion
Reported Policy Recommendations Remain Unconfirmed; No Immediate Change for South Korean Stablecoin Users
The policy report’s recommendations for interim stablecoin licensing and phased rules in South Korea are not officially confirmed and do not represent enacted law. The affected entity is the South Korean digital asset industry, particularly stablecoin issuers and users, who remain subject to existing regulations until further legislative action. The next step is for lawmakers and regulators to consider these advisory recommendations during ongoing negotiations, with no immediate change to user obligations.
- Risk meaning
- The reported recommendations highlight regulatory uncertainty for stablecoin issuers and users in South Korea, as the final legal framework remains unsettled. Interim guidance could help clarify permitted activities and licensing, but until officially adopted, businesses must navigate ambiguity and potential compliance risks.
- User action
- Stablecoin issuers, exchanges, and users in South Korea should monitor legislative developments and policy discussions closely. They must continue to comply with existing regulations, as no new requirements have been officially confirmed. Engagement with industry associations and legal advisors is recommended to stay informed about potential changes.
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