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South Korea should introduce stablecoin rules before completing its wider Digital Asset Basic Act, a new policy report from Hashed Open Research and the Solana Policy Institute argues.
Published July 29, the report summarizes a June 23 policy symposium in Seoul involving lawmakers, legal experts and digital asset executives. It recommends interim guidance for stablecoin businesses while lawmakers work through disputes that have delayed the broader legislation.
Banks and Fintechs Could Split Won Stablecoin Roles
One unresolved issue is who should be allowed to issue won-denominated stablecoins. The Bank of Korea has favored a bank-led structure because of monetary and financial-stability concerns.
Parts of the crypto and fintech industry want a framework that also permits qualified non-bank issuers.
Democratic Party lawmaker Ahn Dogeol said policymakers are considering a compromise under which banks would retain majority ownership of issuing entities while fintech and other non-bank companies handle more operations.
No Final Ownership Rule Exists for Won Stablecoins
The proposed arrangement would give banks responsibility for capital and financial stability. Technology companies could then participate in product development, operations, and distribution.
No final ownership requirement has been agreed. That leaves issuer eligibility as one of the main questions delaying South Korea’s stablecoin framework.
Report Calls for Interim Stablecoin Licensing Guidance
Kim Hyobong, a partner at law firm Bae, Kim & Lee, argued that businesses need clearer rules while the Digital Asset Basic Act remains under negotiation. The report recommends clarifying which digital asset activities banks and other financial institutions can conduct.
It also calls for temporary licensing guidance for stablecoin payment services and rules covering foreign-issued stablecoins already circulating in South Korea. Those steps would give companies a clearer operating path before the full crypto law is finalized.
EU Phased Rollout Cited as Model for South Korea
Kim pointed to the European Union’s phased implementation of its crypto framework as a possible model.
Under that approach, South Korea could set stablecoin issuance and payment requirements first rather than wait for every part of the wider digital asset regime to be settled.
The report argues that stablecoin rules are urgent enough to move separately from slower disputes over exchanges, market conduct and supervisory powers.
Digital Asset Basic Act Remains Under Negotiation
The planned Digital Asset Basic Act would regulate stablecoins alongside crypto issuance, disclosures, exchanges, and market conduct. Multiple bills remain before the National Assembly. Lawmakers have yet to agree on several core provisions, including stablecoin issuer eligibility, exchange ownership restrictions and the division of supervisory powers.
The report does not change existing law or authorize won-backed stablecoins. Its recommendations add pressure for lawmakers to separate areas where agreement is possible from disputes delaying the full framework.
South Korea’s next step depends on whether lawmakers pursue stablecoin rules separately or keep them inside the consolidated Digital Asset Basic Act expected to be debated later this year.
