- Review of the Digital Asset Framework Act by South Korea’s Financial Services Commission is expected to take place in November.
- The question of stablecoin issuance remains relevant amid the development of the country’s crypto regulation in the second stage until 2026.
The next phase of cryptocurrency lawmaking in South Korea is moving towards a November review by parliament, per the Financial Services Commission. The schedule comes amid worries over delays in relation to the Digital Asset Framework Act. According to officials from the FSC, there is common direction between the government and legislators regarding issuance and distribution of digital assets and stablecoins. Seo Na-yoon, the head of the virtual asset section at the FSC, clarified the schedule on September 22, dismissing the allegation of any delay tactics. Ten bills relating to digital assets and stablecoins are waiting in the National Assembly.
Stablecoins Continue to Be of High Importance
The new two-stage framework will be an expansion of South Korea’s first-ever crypto law—the Virtual Asset User Protection Act. The focus of the latter is mostly placed on user protection and unfair trading. The framework, in its turn, will be concerned with the regulation of issuance, disclosures, service providers, and stablecoin rules. Issuer eligibility requirements are among the hottest issues under consideration. The Bank of Korea backs the bank-centered model of issuing won-denominated stablecoins. This issue is tied to monetary policy, payment systems, and financial stability issues.
Proposals for legislative regulations of these issues vary in terms of issuer eligibility and the involvement of fintech companies. The final regulatory framework will depend on how negotiations between legislators, officials, and financial authorities go. “The personnel changes at the FSC will not change the planned schedule,” Seo added.
US Regulations Increase Pressure on Korea’s Timeline
Recent developments in US stablecoin regulation and market structure are yet another issue for the Korean debate to consider. The GENIUS Act put in place a federal regulatory framework for US payment stablecoins. While the January 18, 2027 deadline remains intact despite a delay in the issuance of related regulations, US senators have recently voted against moving the CLARITY Act forward. The 49-50 vote failed to muster the 60 votes needed for procedural success.
Min Byung-duk, a lawmaker from Seoul, brought attention to these recent US developments. According to him, Korea must have its own rules ready because of the imminent introduction of international stablecoins into the market. Indeed, the FSC plans to finalize the second phase of stablecoin regulations within 2026.
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