The implementation of the comprehensive regulatory framework for the cryptographic sector in South Korea has officially shifted to 2026. This delay in the Digital Asset Basic Act stems from a lack of consensus among regulators regarding stablecoin control. Amin Ayan, a journalist specializing in the sector, reported that authorities are divided over issuance requirements.
The Financial Services Commission (FSC) is leading the drafting of this new legal framework to strengthen user protection. On the other hand, the proposal requires issuers to maintain total reserves in bank deposits or government bonds. Companies must guarantee one hundred percent reserve backing to avoid financial collapses. This measure aims to isolate bankruptcy risk effectively and safely in the market.
The bill also contemplates significantly raising compliance standards throughout the entire digital ecosystem. Likewise, service providers must adhere to disclosure and advertising rules similar to traditional finance. In addition, firms could be held liable for damages from hacks even without proven negligence. Operators will face much stricter civil liability standards from its implementation. Regulatory compliance will be mandatory for all platforms registered locally.
Institutional discrepancies block the progress of national digital infrastructure
The central point of the conflict lies in who possesses the legal authority to issue these stable assets. The Bank of Korea insists that only bank-controlled consortia should have this right. However, the FSC warns that limiting issuance to banks could slow down technological innovation. The central bank demands majority bank participation in every single project. Financial regulators defend the openness toward fintech firms in the country.
Another major disagreement revolves around the governance and direct supervision of these new payment tools. The Bank of Korea proposes creating a licensing committee dedicated exclusively to stablecoin oversight. However, the FSC maintains that it is not necessary to create a new bureaucratic body for such functions. Coordination between state agencies remains a significant challenge for the government. The debate over technological autonomy remains stagnant right now.
Will South Korea be able to balance financial stability with the promotion of technological innovation?
Despite the legislative stalemate, giants like BC Card are already conducting successful pilot tests with digital asset payments. Additionally, the government is preparing an aggressive crackdown on financial crime by expanding travel rule requirements. Therefore, the supervision of criptocurrencies will become much more rigorous for small, low-value transfers. Authorities will monitor transactions under one million won in the country. The fight against money laundering is intensifying globally.
The new regulations could also allow initial coin offerings (ICOs) again under very specific and strict criteria. Therefore, local projects would have a legal path to raise funds after years of an absolute ban. In conclusion, although the legal framework is delayed, the final goal is to create a resilient and transparent digital environment. The South Korean market expects greater regulatory clarity by 2026. Investor protection will be the fundamental pillar of the future.
