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South Korea urged to phase stablecoin rules ahead of its digital law
A policy report says stablecoin regulation should be rolled out before South Korea completes its Digital Asset Basic Act, amid unresolved bills over issuance and licensing uncertainty for stablecoin payments.
South Korea should introduce stablecoin regulation in phases, including interim licensing guidance and additional flexibility for stablecoin issuers, before completing its first comprehensive 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 cover stablecoins, issuance, disclosures and market rules, but lawmakers have yet to reconcile multiple bills, with disagreements over stablecoin issuance delaying the legislation.
One proposal discussed by a Democratic Party lawmaker, Ahn Dogeol, involves a compromise where banks would keep majority ownership while fintech and non-bank firms handle operations. The report also calls for clearer guidance on which crypto activities financial institutions may conduct, rules for foreign-issued stablecoins, and more certainty around licensing for stablecoin payments.
Industry partner Kim Hyobong, of Bae, Kim & Lee, urged South Korea to follow the European Union’s phased rollout approach under the Markets in Crypto-Assets Regulation, adding stablecoin issuance rules ahead of the Digital Asset Basic Act, Cointelegraph noted.
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