A policy report published July 29 by Hashed Open Research — the research arm of Hashed, one of South Korea's most prominent cryptocurrency investment firms — and the Solana Policy Institute urges South Korea to adopt interim stablecoin licensing guidance before the full Digital Asset Basic Act is finalized. The report summarizes discussions from a June 23 symposium attended by lawmakers, lawyers, and industry representatives, and recommends a phased regulatory approach.

The recommendations are advisory and do not alter existing South Korean law.

Phased Stablecoin Framework Proposed

The report argues that waiting for the complete Digital Asset Basic Act could leave businesses operating without clear rules. Companies issuing or using won-backed stablecoins need regulatory guidance sooner rather than later, the report states. South Korea ranks among the world's largest retail cryptocurrency markets by trading volume, making the regulatory gap particularly consequential for both domestic and international participants.

Bae, Kim & Lee partner Kim Hyo-bong cited the European Union as a precedent. Under the EU's Markets in Crypto-Assets Regulation (MiCA), stablecoin rules took effect on June 30, 2024 — six months before the remainder of the framework was applied. That staggered timeline, Kim noted, supports the idea of introducing stablecoin rules first, with the broader crypto framework following later.

Bank Ownership Debate Continues

A key unresolved issue involves the ownership structure of stablecoin issuers. Democratic Party lawmaker Ahn Do-geol outlined a potential compromise in which banks would hold majority ownership of stablecoin issuers while fintech partners manage day-to-day operations.

Under one structure currently under discussion, banks would hold more than 50% ownership, while a fintech company could retain 34% along with management rights. Proponents argue this model combines banking-sector oversight with technological expertise. Critics, however, caution that strict bank control could stifle competition.

The Bank of Korea has backed the bank-led approach. Officials have warned that seamless conversion between the Korean won and U.S. dollar stablecoins could complicate capital flow management.

Consolidated Bill Planned for 2026

The Financial Services Commission (FSC) informed the National Assembly on July 29 that it intends to prepare a single consolidated bill in cooperation with the ruling Democratic Party. Ten separate digital asset and stablecoin proposals are currently pending.

No filing date or final wording has been announced, and the FSC has not specified when the combined bill will be ready.

The planned framework would cover stablecoin issuance, exchange conduct, disclosures, internal controls, and system resilience. South Korea's existing Virtual Asset User Protection Act, which took effect in July 2023, currently addresses only custody, unfair trading practices, and customer safeguards — leaving issuer regulations and market structure rules absent. The report identifies this gap as a priority for lawmakers.

Foreign Stablecoin Questions Remain Open

The report also raises unresolved questions about foreign-issued stablecoins available to Korean users. It asks whether overseas issuers should be required to establish a local branch, meet reserve standards, or obtain domestic approval before offering tokens in South Korea. These issues have not yet been settled.

Broader Digital Asset Roadmap

Beyond stablecoins, South Korea has outlined a wider digital asset roadmap that includes foreign-exchange reforms, central bank digital currency pilots, and tokenized government bonds.

No parliamentary vote or implementation deadline has been set. The FSC has confirmed only that it aims to merge the ten pending proposals into a single government-backed bill at some point during 2026.