Crypto▲ Bullish
South Korea Report Urges Interim Stablecoin Rules Before Crypto Law
A policy report recommends interim stablecoin rules for South Korea, citing the EU’s phased 2024 rollout. Lawmakers discuss a bank-fintech ownership split. No deadline has been set.
Continue with
South Korea may introduce stablecoin rules before finishing its broader digital asset law, according to a policy report published July 29 by Hashed Open Research and the Solana Policy Institute.
The report recommends interim guidance on licensing and payments while lawmakers continue work on the full Digital Asset Basic Act. It summarizes a June 23 symposium that included lawmakers and industry representatives. The recommendations are advisory only and do not change any current law.
Kim Hyo-bong, a partner at Bae, Kim & Lee, pointed to the European Union’s Markets in Crypto-Assets Regulation as a precedent. The EU applied stablecoin rules starting June 30, 2024, six months before the rest of the framework took effect. Kim said that timeline supports rolling out stablecoin rules first.
Democratic Party lawmaker Ahn Do-geol described a possible ownership compromise. Banks would hold majority ownership of stablecoin issuers, above 50%. A fintech partner would hold 34% with management rights. Supporters argue this mixes bank oversight with tech expertise. Critics cited in the report worry that strict bank control could limit competition.
The Bank of Korea supports the bank-led approach. Officials have said easier conversion between the won and U.S. dollar stablecoins could complicate capital flow management.