South Korea's financial regulator has proposed bringing won stablecoins used for payments under the country's existing electronic payments framework, even as the dedicated legislation intended to govern digital asset issuers remains stalled in the National Assembly. The proposal landed on the same day that the vice chairman of Dunamu, the operator of Upbit, South Korea's largest crypto exchange, voiced frustration with the pace of domestic regulation. Together, the two developments underline how Korea's approach to digital assets is currently split between interim regulatory moves under existing law and the broader framework still awaiting passage.

Stablecoins to run under e-payment law

Speaking at a separate Seoul forum on stablecoin policy held the same day, Shim Eun-seop, the head of the electronic finance inspection bureau at the Financial Supervisory Service (FSS), said stablecoins used for payments in South Korea will have to adapt to the existing Electronic Financial Transactions Act, per Yonhap News Agency. The FSS official put the proposal forward because the Digital Asset Basic Act, which was supposed to govern stablecoin issuers, has still not passed. In practice, that means payment-focused won stablecoins would initially operate under a framework written for electronic financial transactions rather than under rules drafted specifically for digital asset issuers.

Tokenized trading volume is leaving Korea

In a rare public appearance at the D-CON policy conference, Dunamu co-founder Kim Hyung-nyeon said Upbit and other domestic platforms are being held back from entering the tokenized equities trade by local regulations that have hit a wall, according to Yonhap News Agency.

Tokenized stocks are blockchain-based representations of traditional listed shares. That regulatory headwind has caused traders seeking exposure to such products to move toward offshore exchanges already offering tokenized versions of South Korea's biggest stocks, including Hyundai Motor, Kakao, Naver, Samsung Electronics and SK Hynix — meaning trading in tokenized versions of Korean blue chips currently takes place on venues outside domestic oversight.

Lawmakers push to unblock stalled regulation

The legislation that could move tokenized stock trading activity onshore continues to slip. The government's draft of the Digital Asset Basic Act is expected later this month, and ruling-party lawmakers attending both events pushed for a quick vote. Political Affairs Committee chair Yoo Dong-su and Democratic Party Rep. Min Byung-duk have both expressed the will to pass the draft once it arrives, with Rep. Min committing to a January 18 deadline.

Separately, the Financial Services Commission (FSC) is drafting its own rules to allow tokenized stocks, bonds and funds to trade in the country from February 4, 2027, as set out in an FSC announcement. The regulator is accepting public comments on that proposal until November 11. In the meantime, the FSS's e-payment directive is the stated framework for payment stablecoins, while domestic platforms remain on the sidelines of tokenized equities pending legislative action.