South Korea Report Calls for Stablecoin Flexibility Amid Digital Asset Act Delay

A policy report published by Hashed Open Research and the Solana Policy Institute suggests that South Korea should allow greater flexibility for stablecoin issuers and phase in stablecoin regulation before completing its Digital Asset Basic Act. The report, which summarizes a June 23 symposium attended by lawmakers, legal experts, and industry participants, recommends providing interim licensing guidance to stablecoin issuers.

The Digital Asset Basic Act would establish South Korea's first comprehensive digital asset framework, covering stablecoins, issuance, disclosures, and market rules. However, lawmakers have yet to reconcile multiple bills, with disagreements over stablecoin issuance delaying the legislation. A compromise proposal suggests that banks would retain majority ownership while fintech and non-bank firms managed operations.

Kim Hyobong, a partner at Bae, Kim & Lee, urged South Korea to clarify which crypto activities financial institutions may conduct, resolve licensing uncertainty for stablecoin payments, and set rules for foreign-issued stablecoins. He also suggested that South Korea follow the European Union's phased rollout of the Markets in Crypto-Assets Regulation by introducing stablecoin issuance rules ahead of the Digital Asset Basic Act.