Key facts
- A policy report suggests South Korea should adopt flexible stablecoin rules and interim licensing guidance.
- The recommendations are intended to precede the finalization of the Digital Asset Basic Act.
- The Digital Asset Basic Act is South Korea's first comprehensive digital asset framework.
- Legislative progress on the Act is stalled due to disagreements over stablecoin issuance.
- A proposed compromise would see banks hold majority ownership while fintech firms manage operations.
- Experts advocate for clearer rules on crypto activities for financial institutions and foreign stablecoins.
A policy report released by Hashed Open Research and the Solana Policy Institute recommends that South Korea implement more flexible regulations for stablecoin issuers and provide interim licensing guidance. These measures should be introduced ahead of the finalization of the country's comprehensive Digital Asset Basic Act.
The report, which summarizes a symposium attended by lawmakers, legal experts, and industry participants, highlights that the Digital Asset Basic Act is intended to establish South Korea's first overarching digital asset framework, encompassing stablecoins, issuance, disclosures, and market rules. However, legislative progress has been hindered by disagreements among lawmakers, particularly concerning stablecoin issuance.