South Korea has delayed the rollout of its comprehensive digital asset regulatory framework to 2026 as disagreements over stablecoin oversight remain unresolved. Authorities broadly agree on the need to strengthen investor protection and improve accountability across the crypto sector, but divisions over who should control stablecoin issuance and reserves have stalled progress. The proposed Digital Asset Basic Act was intended to establish a clear legal foundation for exchanges, issuers, and service providers, including stricter disclosure requirements and enhanced user safeguards. However, debates between financial regulators and the central bank have prevented the bill from moving forward on schedule. The delay comes at a sensitive time for one of Asia’s most active crypto markets, where regulatory clarity is seen as essential for sustaining institutional participation and long term growth.
At the center of the impasse is the structure of stablecoin issuance and reserve management. Financial regulators favor a framework that would require full reserve backing held in secure assets such as bank deposits or government bonds, with custody handled by licensed third parties. The central bank has taken a more restrictive stance, arguing that stablecoins should be issued only by bank led groups to reduce risks to monetary stability. This approach has raised concerns among policymakers who worry that strict ownership thresholds could limit competition and slow innovation by excluding technology firms and non bank financial players. As discussions continue, the lack of agreement has pushed the broader regulatory package further down the legislative timeline.
The postponement has introduced uncertainty for crypto businesses operating in South Korea, including exchanges, payment providers, and stablecoin developers. While there has been no immediate market disruption, industry participants caution that prolonged regulatory ambiguity could discourage investment and delay product launches. The delay also affects related policy goals, such as the potential return of domestic token offerings under tighter rules. Political pressure is mounting as lawmakers and the government seek to balance financial stability with innovation. How the final legislation addresses stablecoins is expected to play a decisive role in shaping South Korea’s digital asset landscape over the coming years.
