South Korea’s digital asset bill stalled over who can issue stablecoins

South Korea's anticipated Digital Asset Basic Act (DABA), intended to regulate crypto trading, is stalled because regulators disagree on who should issue won-pegged stablecoins. The Bank of Korea (BOK) insists only banks with majority (51%) ownership should issue them, citing existing solvency and AML requirements. Conversely, the Financial Services Commission (FSC) favors a more flexible approach, warning the BOK's "51% rule" could stifle innovation from fintech firms, pointing to EU and Japanese models where digital asset firms are prominent issuers. The ruling Democratic Party of Korea also opposes the BOK's proposal, suggesting regulatory measures can mitigate stability concerns. The deadlock also covers rules for foreign stablecoins, potentially requiring issuers like Circle to establish a local presence. This legislative delay means full implementation of the act is unlikely before 2026.

(Source：CoinDesk)