South Korea's crypto framework law targets fall passage

The FSC told lawmakers in July it planned to prepare a consolidated package with the ruling Democratic Party. As many as 10 pending digital-asset bills could be combined into a single proposal during 2026, according to earlier reports.

Stablecoins are expected to take a prominent place in the new law. The Bank of Korea has backed a bank-led model for won-denominated stablecoins, arguing banks should take the lead role given potential effects on payments and monetary policy. The FSC has been working on the legislation alongside those discussions.

The government’s July blockchain policy roadmap linked stablecoin legislation with plans for central bank digital currency pilots, tokenized government bonds and changes meant to increase the international use of the won. The roadmap – jointly announced by the FSC, Bank of Korea, Financial Supervisory Service and Korea Securities Depository – also included work toward a framework for spot cryptocurrency ETFs.

Rules affecting virtual asset service providers are changing separately. South Korea revised its Foreign Exchange Transactions Act in June to bring cross-border crypto transfers under formal regulation. The amended law takes effect in December after a six-month grace period. Companies providing cross-border crypto transfer services will need to register with the Ministry of Economy and Finance and report transactions through the Bank of Korea’s foreign-exchange system.

Current VASP registration runs through the Financial Intelligence Unit under the FSC, giving the regulator a central role in both the existing compliance system and the upcoming second-phase legislation.

At the Aug. 24 meeting, Lee directly asked Kim whether the government could submit its proposal soon enough for lawmakers to act during the fall session and avoid a delay into 2027. Kim told the committee the FSC would accelerate consultations and do its best to meet the requested timing.