Hashed Open Research and the Solana Policy Institute released a policy report on Wednesday calling on South Korea to establish stablecoin rules before the country completes its proposed Digital Asset Basic Act. The report recommends allowing greater flexibility for issuance, providing guidance for transitional licenses, and bringing regulation in through phased implementation.
The document compiles discussion points from a June 23 roundtable attended by lawmakers, legal experts, and industry participants. The full report is available on the Hashed Open Research website.
Stablecoin issuance rules should come first
According to the report, the Digital Asset Basic Act would create South Korea’s first comprehensive framework for digital assets, covering stablecoins, issuance, disclosures, and market rules. But bills proposed by several lawmakers have not yet been consolidated, and differences over the design of stablecoin issuance have delayed the legislative process.
Democratic Party lawmaker Ahn Dogeol said policymakers are considering a compromise under which banks would retain majority ownership while fintech companies and non-bank institutions would manage day-to-day operations.
Lawyers point to the EU’s phased MiCA model
Kim Hyobong, a partner at Bae, Kim & Lee, said South Korea should clarify what kinds of crypto activities financial institutions are allowed to conduct, address licensing uncertainty tied to stablecoin payments, and establish rules for stablecoins issued offshore.
He also said South Korea should follow the phased rollout model used under the European Union’s Markets in Crypto-Assets regulation, or MiCA, and bring in stablecoin issuance rules before the Digital Asset Basic Act is formally enacted.
South Korea stablecoin legislation timeline
- June 2025: A stablecoin bill was submitted that would allow domestic companies to issue stablecoins with sufficient reserve assets.
- August 2025: A financial regulator report was expected to submit a stablecoin oversight bill in October, and the heads of South Korea’s four major banks met with Circle’s CEO.
- Late 2025: The Bank of Korea and the Financial Services Commission diverged on the draft, and a won-denominated stablecoin missed the chance to launch first in Asia.
- July 2026: The central bank reiterated its bank-led stance and added a deposit token pilot.
Comparison with Taiwan
The report also compares South Korea’s progress with Taiwan. It says Taiwan has launched a pilot for the digital New Taiwan dollar, or eTWY, but stablecoin oversight there still relies mainly on central bank guidance, with no dedicated law proposed so far.
South Korea’s legislative process has been slowed by disagreement, the report says, but the overall direction is already clearer: start with stablecoins and then expand toward a broader digital asset framework. It adds that if Taiwan wants to remain competitive in Asia’s crypto market, it may need to consider a similar approach by setting transitional rules for stablecoins before a full digital asset law is introduced.