A policy report from Hashed Open Research and the Solana Policy Institute urges South Korea to phase in stablecoin rules before its Digital Asset Basic Act is passed.
South Korea's stablecoin regulatory debate is drawing attention ahead of the country's broader crypto legislation, with a new policy report urging authorities to act on stablecoins before a comprehensive framework is in place.
The report, published July 29 by Hashed Open Research and the Solana Policy Institute, summarizes a June 23 symposium that brought together lawmakers, legal experts, and industry participants to discuss the country's approach to digital asset regulation.
A Law Still Waiting To Be Finished
South Korea's Digital Asset Basic Act would be the country's first comprehensive digital asset framework, covering stablecoin issuance, disclosures, and market rules. Lawmakers have not yet reconciled several competing bills, and disagreements over stablecoin issuance rules have held up the legislation.
Democratic Party lawmaker Ahn Dogeol said policymakers were weighing a compromise that would allow banks to retain majority ownership of stablecoin operations while fintech and non-bank firms handled day-to-day management.
Related Article: South Korea Plans New Law To Manage Crypto as State Assets
What the Report Recommends
Kim Hyobong, a partner at law firm Bae, Kim & Lee, said South Korea should clarify which crypto activities financial institutions are permitted to conduct, resolve licensing uncertainty around stablecoin payments, and establish rules for foreign-issued stablecoins operating in the country.
Kim also pointed to the EU's phased rollout of the Markets in Crypto-Assets Regulation as a model, arguing South Korea should introduce stablecoin issuance rules in advance of the Digital Asset Basic Act rather than waiting for the full law to pass. The report echoes that position, recommending licensing guidance and greater regulatory flexibility for stablecoin issuers in the interim.
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