South Korea's long-awaited crypto law stalls over who can issue stablecoins

2025-12-30 19:20:10

Source: CryptoNewsNet Original Title: South Korea’s long-awaited crypto law stalls over who can issue stablecoins Original Link: https://cryptonews.net/news/legal/32207500/ South Korea’s long-awaited Digital Asset Basic Act (DABA), a sweeping framework meant to govern crypto trading and issuance in one of Asia’s most active digital asset markets, has been delayed amid disagreements among regulators over stablecoin issuance.

The most significant disagreement centers on who should have the legal authority to issue KRW-pegged stablecoins. The Bank of Korea (BOK) argued that only banks with majority (51%) ownership should be permitted to issue stablecoins. It said financial institutions are already subject to stringent solvency and anti-money-laundering requirements and therefore the only ones in position to ensure stability and protect the financial system.

The Financial Services Commission (FSC), which oversees financial policy-making, is more flexible. It acknowledged the need for stability, but warned that a strict “51% rule” could stifle competition and innovation, blocking fintech firms with the technical expertise to build scalable blockchain infrastructure from participating.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.