- South Korea aims to introduce its Framework Act on Digital Assets in September 2026, paving the way for regulated won-backed stablecoins and a clearer crypto regulatory framework.
- The proposed legislation seeks to strengthen investor protection, improve market oversight, and establish rules for stablecoin issuance, while debates over bank-led issuance and crypto exchange ownership remain unresolved.
- Alongside the stablecoin bill, the Bank of Korea plans to expand its Project Hangang CBDC pilot, highlighting the country’s broader push to modernize digital payments and remain competitive in the global crypto market.
The long-awaited Framework Act on Digital Assets is scheduled to be introduced by lawmakers in September 2026, marking the advancement of South Korea’s ambitions to create a framework for digital assets.
A major step in the nation’s developing cryptocurrency strategy, the legislation is anticipated to give legal recognition to stablecoins denominated in Korean won.
The Financial Services Commission (FSC) and the ruling Democratic Party met behind closed doors on July 20, which resulted in renewed vigor. Both parties decided to speed up talks by conducting twice-monthly meetings of the National Assembly’s Political Affairs Committee subcommittees. After months of delays, the action shows a greater dedication to completing cryptocurrency laws.
South Korea’s Won Stablecoin Bill Faces Key Regulatory Challenges
After the Democratic Party completes its leadership reorganization after its national convention in August, lawmakers think the September deadline may be met. In order to push the legislation through the National Assembly in the second half of the year, the party also intends to restructure its Digital Asset Task Force.
The proposed legislation aims to improve market supervision and investor safety while establishing precise guidelines for the issuance and regulation of won-backed stablecoins. However, there are still a number of significant problems. The Bank of Korea supports the idea that stablecoins should only be produced by bank-led consortiums, which is one of the main points of contention.
Allowing non-bank companies to create stablecoins, according to the central bank, might raise financial risks and jeopardize monetary stability.
South Korea Faces Key Hurdles Over Crypto Exchange Ownership & Stablecoin Rules
Ownership rules for cryptocurrency exchanges are another unsolved problem. Legislators are still debating whether or not all virtual asset trading platforms should follow the same stock ownership regulations. This decision could have a big impact on the biggest cryptocurrency exchanges in the nation.
International developments have also impacted South Korea’s urgency. Global adoption of dollar-backed stablecoins is anticipated to accelerate with the impending implementation of the U.S. GENIUS Act. South Korea runs the risk of witnessing the widespread adoption of international stablecoins prior to the availability of a regulated won-based substitute in the absence of a domestic regulatory framework.
At the same time, the Bank of Korea is getting ready to grow its wholesale central bank digital currency (CBDC) pilot program, Project Hangang. More participating banks, more payment capabilities, and tests for allocating government subsidies through tokenized bank deposits are all part of the second phase, which could begin as early as September.
The expansion demonstrates the nation’s larger endeavor to update its payment infrastructure in tandem with the development of digital assets in the private sector.
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