Key Disputes Push South Korean Crypto Law into 2026

A landmark bill that would shape South Korea’s cryptocurrency landscape, including allowing won-based stablecoins, has been delayed until 2026. Lawmakers cited persistent disagreements on core issues as the reason for the setback.

Government officials continue to refine the Digital Asset Basic Act, but major hurdles remain. The central points of conflict involve stablecoin issuers and other relevant bodies, preventing a consensus from being reached.

The proposed law would enable the issuance of local stablecoins, a development expected to significantly boost the domestic crypto ecosystem. It includes safeguards, such as requiring issuers to place all reserve assets with approved banks or other custodians.

Specific debates include the need for a pre-approved oversight group for stablecoin providers. South Korea’s financial regulator is concurrently examining ways to minimize mandatory roles for traditional banks, aiming to open the field for tech industry participation.