A policy report urges interim licensing and flexible stablecoin rules before South Korea’s Digital Asset Basic Act takes effect.
South Korea is considering interim stablecoin regulations before finalizing its comprehensive Digital Asset Basic Act. A policy report by Hashed Open Research and the Solana Policy Institute recommends phased rules, including licensing guidance and greater flexibility for issuers, to avoid delays in the broader crypto framework.
The Digital Asset Basic Act aims to establish South Korea’s first full regulatory framework for digital assets, covering issuance, disclosures, and market rules. However, disagreements over stablecoin issuance have stalled progress, with lawmakers debating ownership structures between banks and fintech firms.
Legal experts suggest clarifying crypto activities for financial institutions and setting rules for foreign-issued stablecoins. The report advises following the EU’s approach by prioritizing stablecoin regulations ahead of the full law.