Stablecoin Issues Cause Setback for South Korean Crypto Bill
The submission of a pivotal cryptocurrency bill in South Korea has been delayed, with stablecoin regulations at the heart of the postponement. Lawmakers now anticipate putting forward the Digital Asset Basic Act around 2026.
A recent news report indicates that behind-the-scenes work on the legislation continues within the government. However, progress has been stalled by major unresolved conflicts with involved agencies, particularly regarding the parameters for stablecoin issuance.
This proposed legislation, introduced earlier this year, would permit the creation of stablecoins tied to the South Korean won. To protect users, the bill would require issuing companies to entrust their full reserve holdings to qualified custodians like banks.
Reported disagreements center on the oversight model for issuers, including whether a pre-approved supervisory body is necessary. Authorities are also considering reducing the obligatory role of banks to foster innovation from the tech sector.
