South Korea Postpones Crypto Legislation Amid Stablecoin Debate

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South Korean legislators have reportedly postponed the submission of a comprehensive digital asset bill, which includes provisions for domestic stablecoins, due to unresolved critical issues. The delay pushes the expected submission timeline to sometime in 2026.

As per a Yonhap News report, government officials continue to develop the Digital Asset Basic Act. The holdup is attributed to significant disagreements with relevant organizations, specifically concerning the framework for stablecoin issuers.

Initially proposed by the ruling Democratic Party in June, the bill aims to authorize won-pegged stablecoins, a move anticipated to stimulate the local crypto market. Proposed requirements would mandate issuers to place all reserve assets with authorized custodians, such as banks.

Key disputes involve whether to pre-authorize a consortium of organizations to supervise stablecoin issuers. The Financial Services Commission is reviewing the proposal while also weighing options to limit financial institutions’ roles, thereby encouraging more participation from technology firms.