South Korea Considers Interim Rules for Stablecoins

The recommendations, published July 29 by Hashed Open Research and the Solana Policy Institute, suggest a phased approach to regulation. Drawing inspiration from the European Union’s MiCA framework, experts argue that establishing clear rules for issuance and payments now would allow firms to prepare for future mandates before the final law takes full effect in 2026.

Central to the debate is the role of traditional financial institutions. Democratic Party lawmaker Ahn Do-geol floated a compromise model where banks retain majority ownership of issuers while fintech firms manage operations. While this structure aims to balance bank-level oversight with technical agility, critics warn that strict bank control could stifle competition. The Bank of Korea remains cautious, citing concerns that easier conversions between won and U.S. dollar stablecoins could complicate national capital-flow management.

Currently, the Financial Services Commission intends to consolidate ten pending legislative proposals into a single government-backed bill. While the existing Virtual Asset User Protection Act covers basic consumer safeguards, the second phase of reform must still address complex issues such as foreign-issued tokens, reserve requirements, and the integration of tokenized assets into traditional markets. No parliamentary vote has been scheduled, and these recommendations remain advisory rather than binding legal requirements.