South Korea’s long-awaited crypto law stalls over who can issue stablecoins

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email South Korea’s long-awaited crypto law stalls over who can issue stablecoins The Digital Asset Basic Act is stalled as regulators clash over who should be allowed to issue won-pegged stablecoins, extending uncertainty in one of Asia’s most active crypto markets. By Olivier Acuna | Edited by Nikhilesh De Dec 30, 2025, 5:36 p.m. The Bank of Korea wants banks to control stablecoin issuance, but regulators and lawmakers warn the 51% rule could stifle innovation. What to know : South Korea's Digital Asset Basic Act is delayed due to disagreements over stablecoin issuance authority. The Bank of Korea insists only banks with 51% ownership should issue stablecoins, while the Financial Services Commission warns this could hinder innovation. The deadlock may delay the bill's passage until January, with full implementation unlikely before 2026. South Korea’s long-awaited Digital Asset Basic Act (DABA), a sweeping framework meant to govern crypto trading and issuance in one of Asia’s most active digital asset markets, has been delayed amid disagreements among regulators over stablecoin issuance. The most significant disagreement centers on who should have the legal authority to issue KRW-pegged stablecoins, according to a Korea Tech Desk article . The Bank of Korea (BOK) argued that only banks with majority (51%) ownership should be permitted to issue stablecoins. It said financial institutions are already subject to stringent solvency and anti-money-laundering requirements and therefore the only ones in position to ensure stability and protect the financial system. STORY CONTINUES BELOW Huwag palampasin ang isa pang kuwento. Mag-subscribe sa State of Crypto Newsletter ngayon . Tingnan lahat ng newsletter I-sign up ako Sa pamamagitan ng pag-sign up, makakatanggap ka ng mga email tungkol sa mga produkto ng CoinDesk at sumasang-ayon ka sa aming mga tuntunin ng paggamit at patakaran sa privacy . The Financial Services Commission (FSC), which oversees financial policy-making, is more flexible. It acknowledged the need for stability, but warned that a strict “51% rule” could stifle competition and innovation, blocking fintech firms with the technical expertise to build scalable blockchain infrastructure from participating, according to the report. The FSC cited the European Union's Markets in Crypto-Assets regulation, in which most licensed stablecoin issuers are digital asset firms rather than banks. It also pointed to Japan’s fintech-led yen stablecoin projects as an example of regulated innovation. The deadlock highlights a broader global debate over whether banks or fintech firms should control fiat-backed stablecoins, a decision that could shape competition, innovation and monetary oversight. The ruling Democratic Party of Korea (DPK) also opposes the BOK’s 51% rule, a Korea Times article reported last week. “A majority of participating experts voiced concerns about the BOK’s proposal, with many questioning whether such a framework could deliver innovation or generate strong network effects,” DPK lawmaker Ahn Do-geol said. “It is also hard to find global legislative precedents in which institutions from a specific sector are required to hold a 51%.” He said the BOK’s stability concerns could be mitigated through regulatory and technological measures, a view the lawmaker added, “is broadly shared among policy advisors”. Foreign-issued stablecoins are also another key sticking point. According to an earlier draft of the government proposal prepared by the FSC, foreign-issued stablecoins would be allowed in South Korea if they are licensed and have a branch or subsidiary in the country. That would require issuers such as Circle, which issues USDC, the world’s second-largest stablecoin, to establish a local presence for the token to be legally used in the country. The regulatory deadlock is expected to delay the bill’s passage until at least January, with full implementation now unlikely before 2026, according to AInvest. South Korea’s digital assets act marks a significant shift in a country that for nine years banned crypto, a stance that its financial watchdog began to soften earlier this year . South Korea Regulation Stablecoins Higit pang Para sa Iyo State of the Blockchain 2025 Ni CoinDesk Research Dis 19, 2025 Commissioned by Input Output Group L1 tokens broadly underperformed in 2025 despite a backdrop of regulatory and institutional wins. Explore the key trends defining ten major blockchains below. Ano ang dapat malaman : 2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns. This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026. View Full Report Higit pang Para sa Iyo As Democrats gain in odds to take U.S. House, Waters bashes SEC chair on crypto Ni Jesse Hamilton | Edited by Aoyon Ashraf 20 oras ang nakalipas Maxine Waters, the top Democrat who may lead the House Financial Services Committee again if Democrats prevail, has a crypto bone to pick with SEC's Atkins. Ano ang dapat malaman : Representative Maxine Waters, the ranking Democrat on the House Financial Services Committee, called for a hearing with Securities and Exchange Commission Chairman Paul Atkins to discuss his crypto moves and other topics. Her party has a strong chance to take back the House of Representatives majority in 2026, potentially moving her back into the spot as committee chair. 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