A new policy report is urging South Korea to introduce temporary stablecoin regulations before lawmakers finalize the broader Digital Asset Basic Act.
The report, published on July 29 by Hashed Open Research and the Solana Policy Institute, argues that businesses need clear rules now rather than waiting for a comprehensive crypto law that could take longer to complete.
Based on discussions from a June symposium involving lawmakers, legal experts, and digital asset industry representatives, the report recommends a phased approach to regulating stablecoins, payment services, and foreign-issued digital assets.
According to the report, introducing interim licensing guidance would help companies prepare for future regulations while providing greater legal certainty for firms looking to issue or use Korean won-backed stablecoins.
One of the biggest issues still under debate is who should control stablecoin issuers.
Democratic Party lawmaker Ahn Do-geol said policymakers are considering a compromise that would allow banks to hold majority ownership of stablecoin issuers while fintech companies manage day-to-day operations. Under one proposal discussed publicly, banks could own more than 50% of an issuer, while a fintech partner could hold a significant minority stake and retain management rights.
Supporters believe this model could combine the financial stability of banks with the technological expertise of fintech firms. However, critics argue that giving banks too much control could reduce competition and limit innovation.
The Bank of Korea has generally supported a bank-led approach, citing concerns about monetary policy, foreign exchange management, and financial stability. Officials have warned that easier movement between Korean won stablecoins and U.S. dollar stablecoins could create challenges for managing capital flows.
At the same time, South Korea’s Financial Services Commission (FSC) is working with lawmakers to combine multiple crypto-related proposals into a single Digital Asset Basic Act. Around ten separate digital asset and stablecoin bills are currently under consideration.
The future law is expected to address areas such as stablecoin issuance, exchange operations, disclosures, internal controls, and system security. Existing regulations mainly focus on investor protection and market misconduct.
The report also highlights the need for clear rules regarding foreign stablecoins. Policymakers are still debating whether overseas issuers should be required to establish local offices, meet reserve requirements, or obtain approval before offering services to Korean users.
For now, the recommendations remain advisory and do not represent official government policy. No final legislation, parliamentary vote, or implementation timeline has been announced.
However, the report reflects growing pressure on South Korean regulators to provide clearer stablecoin rules as the country continues developing its broader digital asset framework.
