A latest policy report from an independent research institute is calling on the South Korean government to urgently introduce interim stablecoin regulatory criteria before a comprehensive digital asset bill enters into force. The move reflects significant obstacles in pushing forward the primary legislation, which is currently mired in disputes over issuance authority, and recommends following the European Union's approach to reduce ambiguity and attract investment into the digital economy.
The policy report, published in late July 2026 by Hashed Open Research in collaboration with the Solana Policy Institute, recommends that South Korean regulators provide greater flexibility to stablecoin issuers. The proposal covers the issuance of provisional licenses and the phased implementation of related regulations, ahead of the completion of the foundational digital asset bill. The content was drawn from a discussion forum that gathered perspectives from politicians, legal experts, and representatives of the crypto industry.
The main digital asset bill aims to be the country's first framework encompassing everything from stablecoins and disclosure requirements to market rules. However, legislators have yet to reach agreement on several issues. A dispute over the right to issue stablecoins has become an obstacle that is delaying the entire legislative review process.
Most recently, Ahn Dogeol, a member of the National Assembly from the Democratic Party, revealed that policymakers are considering a compromise solution — potentially allowing commercial banks to hold majority stakes while fintech companies and non-financial institutions manage operations.
Meanwhile, Kim Hyobong, a partner at the law firm Bae, Kim & Lee, believes South Korean authorities should clarify which types of crypto business financial institutions are permitted to engage in, and recommends urgently resolving the ambiguity surrounding the use of stablecoins for payments, as well as establishing criteria to accommodate coins issued by foreign entities. He also urged the government to consider the European Union model of phased regulatory implementation to pilot stablecoin oversight in the interim.
South Korea's shifting approach represents a significant signal that investors and operators across the Asia region must watch closely. The move to regulate stablecoins separately reflects the fact that this class of assets has become financial infrastructure with real-economy implications that go beyond ordinary cryptocurrencies. If Seoul can successfully strike a balance between fintech innovation and commercial banking stability, it may serve as a template for regulators across the region to adopt in setting new standards for digital capital markets over the long term.
