- South Korea has delayed its Digital Asset Basic Act until 2026 due to a regulatory deadlock over which institutions can issue won-pegged stablecoins.
- The Bank of Korea insists that banks must hold a 51% controlling stake in stablecoin issuers, while the Financial Services Commission argues this would stifle competition from fintech firms.
- New rules may require foreign issuers like Circle (USDC) to establish local branches to operate, while exchanges would face strict liability for user losses from hacks or system failures.
South Korea’s Digital Asset Basic Act has been pushed back after regulators failed to agree on stablecoin policy.
The broad bill, meant to set rules for crypto trading and token issuance, is being disputed over who can issue a stablecoin tied to the Korean won, the token designed to hold a fixed value against fiat currency.
According to a report by Korea Tech Deck, the Bank of Korea wants issuance limited to entities where banks hold a 51% controlling stake, arguing bank-led structures are easier to supervise and better suited to manage solvency and anti-money-laundering risks.
However, the Financial Services Commission (FSC) supports stricter safeguards but has opposed a hard ownership threshold, saying it would shut out fintech firms and reduce competition.
The FSC has pointed to overseas models where licensed issuers are often non-bank crypto or payments firms, citing the European Union’s Markets in Crypto-Assets (MiCA) framework and Japan’s regulated, fintech-driven stablecoin projects.
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South Korea’s ruling Democratic Party has also criticised the 51% proposal, with lawmaker Ahn Do-geol saying most experts consulted questioned whether the rule would support innovation and noting a lack of clear global precedents for a sector-specific ownership requirement.
Rules for foreign stablecoins remain another unresolved issue. An earlier FSC draft would allow offshore issuers to operate if they are licensed and maintain a local branch or subsidiary, a step that could require major issuers such as Circle (USDC) to establish a Korean presence. The regulator also drafted rules that would force exchanges to reimburse users for losses from hacking or system failures.
Local reporting expects the impasse to delay passage until at least January, with full rollout now seen as unlikely before later in 2026.
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