South Korea should allow greater flexibility for stablecoin issuers, provide interim licensing guidance, and phase in stablecoin regulation ahead of completing its Digital Asset Basic Act, according to a policy report co-published by Hashed Open Research and the Solana Policy Institute. The report summarizes recommendations from a June 23 symposium that brought together lawmakers, legal experts, and digital asset industry leaders.
The proposed Digital Asset Basic Act represents South Korea’s effort to build a comprehensive regulatory framework for digital assets, encompassing issuer disclosures, operational standards, market conduct, and stablecoins. However, legislative progress has stalled as lawmakers work to reconcile competing draft bills, with disagreements over stablecoin issuer structures serving as a key bottleneck. To break the impasse, Democratic Party lawmaker Ahn Dogeol outlined a potential compromise where traditional banks hold majority ownership in stablecoin projects while fintech and non-bank firms handle operational management.
Industry legal experts, including Bae, Kim & Lee partner Kim Hyobong, urged policymakers to take immediate interim steps. Kim recommended clarifying permitted crypto activities for financial institutions, resolving licensing ambiguity for stablecoin payment providers, and establishing clear guidelines for foreign-issued stablecoins. Drawing a parallel to international precedents, Kim suggested South Korea model its strategy on the European Union’s Markets in Crypto-Assets (MiCA) regulation by introducing stablecoin-specific rules before enacting the full Digital Asset Basic Act.
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