South Korea is looking to introduce interim rules for stablecoins before the full Digital Asset Basic Act is finalized. The move aims to give companies clearer guidelines on won-backed stablecoins amid ongoing legislative discussions.
A recent report by Hashed Open Research and the Solana Policy Institute, published July 29, highlights the need for phased regulations. It suggests that licensing, permitted activities, and payment services for stablecoins be clarified now, so companies can get ready while lawmakers work on a broader crypto framework.
Bank Ownership and Fintech Management Debate
The major sticking point remains the control structure for stablecoin issuers. Lawmakers are exploring a compromise where banks hold majority ownership but fintech firms handle operations. This setup, under discussion by Democratic Party lawmaker Ahn Do-geol, would see banks owning over 50 percent while fintech partners manage day-to-day business with a 34 percent stake.
Proponents say this model balances regulatory oversight with innovation. Critics worry it could limit competition. The Bank of Korea backs bank dominance because of concerns about monetary policy, foreign exchange, and financial stability.
Law firm partner Kim Hyo-bong from Bae, Kim & Lee pointed to the EU’s Markets in Crypto-Assets Regulation (MiCA), which began applying stablecoin rules six months before its full framework went live. This example strengthens the argument for South Korea to move on stablecoin regulations ahead of completing the entire Digital Asset Basic Act.
The report summarizes discussions from a June 23 symposium with lawmakers, lawyers, and industry leaders. It also notes that ten separate proposals on digital assets may merge into a single government-backed bill planned for negotiations in 2026.
This article is for informational purposes and does not constitute financial advice.
