South Korea should allow greater flexibility for stablecoin issuers, provide interim licensing guidance and phase in stablecoin regulation before completing its Digital Asset Basic Act, accor
South Korea should allow greater flexibility for stablecoin issuers, provide interim licensing guidance and phase in stablecoin regulation before completing its Digital Asset Basic Act, according to a policy report published Wednesday by Hashed Open Research and the Solana Policy Institute.
The report summarizes a June 23 symposium attended by lawmakers, legal experts and industry participants.
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.
Democratic Party lawmaker Ahn Dogeol said policymakers were considering a compromise under which banks would retain majority ownership while fintech and non-bank firms managed operations.
Kim Hyobong, a partner at Bae, Kim & Lee, said South Korea should clarify which crypto activities financial institutions may conduct, resolve licensing uncertainty for stablecoin payments and set rules for foreign-issued stablecoins.
Kim also urged South Korea to 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.
Related: South Korea plans stablecoin rules as opposition pushes crypto tax repeal
