- The Digital Asset Basic Law is made in a way to be the foundation of South Korea’s cryptocurrency regulatory framework.
- The non-agreement has entangled decisions over enforcement powers with the treatment of reserve assets, pushing authorities to delay the bill.
South Korea has delayed its Digital Asset Basic Law till 2026, as regulators are still divided over stablecoin oversight authority, as revealed by legislative sources. The policymakers have halted the crypto legislation as the Financial Services Commission and the Bank of Korea carry on clashing over control of stablecoin reserves and enforcement responsibilities, making regulatory uncertainty in one of Asia’s biggest crypto markets.
The Digital Asset Basic Law is made in a way to be the foundation of South Korea’s cryptocurrency regulatory framework. The legislation is focused on strengthening investor protection by putting robust and strict legal regulations on digital asset operators as per the draft bill.
The prominent offer includes the introduction of no-fault liability, making operators responsible for user losses even without determined negligence. The draft also needs stablecoin issuers to keep reserves surpassing 100% of circulating supply kept at banks or dignified institutions and different from the issuer’s balance sheet to restrict contagion risks.
Stablecoin oversight came as the major point of contention between regulators. At the same time, the authorities widely agree on the requirement of stronger supervision; they haven’t reached consensus on the basis of responsibilities for preserved rule enforcement and licensing authority.
The Non-Agreement
The non-agreement has entangled decisions over enforcement powers with the treatment of reserve assets, pushing authorities to delay the bill instead of advancing legislation having unresolved structural issues.
The delay further creates an uncertainty for crypto firms of South Korea, together with exchanges, payment providers and stablecoin issuers. If the regulatory framework is not complete, then it may affect the product launches, investment decisions, and operational planning, as said by industry observers.
The ruling party has planned to consolidate various policymaker proposals into a revised digital asset bill. The president of the Democratic Party, Lee Jae Myung, has recognised that a Korean won-supported stablecoin is a national priority, declaring it could be against the dominance of US dollar-linked stablecoins in global crypto markets, as per the statements from the presidential office.
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Source: https://thenewscrypto.com/south-korea-delays-digital-asset-basic-law-to-2026/
