South Korea’s Stablecoin Bill Deadline Pushed To 2026 As Issuance Dispute Continues – Report

The submission of South Korea’s long-awaited crypto invoice continues to face hurdles because of the ongoing disagreements between the principle regulatory companies over insurance policies associated to stablecoin issuers.

South Korea’s Digital Assets Act Delayed

On Tuesday, native information retailers reported that South Korea’s Second Phase of the Virtual Asset User Protection Act will likely be delayed till subsequent 12 months as monetary authorities proceed to conflict over stablecoin issuance-related laws.

According to Yonhap News Agency, monetary circles and the National Assembly shared on December 30 that the principle insurance policies of the crypto framework have been largely determined.

Notably, the Financial Services Commission (FSC)’s draft is predicted to incorporate investor safety measures comparable to no-fault legal responsibility for crypto asset operators and isolation of chapter dangers for stablecoin issuers.

As a part of investor safety measures, stablecoin issuers will seemingly be required to handle reserve property in deposits and authorities bonds. In addition, they are going to be required to deposit or entrust not less than 100% of the issuance quantity with custodians comparable to banks.

The invoice might additionally require crypto asset operators to adjust to disclosure obligations in addition to phrases and situations. Moreover, it could “impose strict legal responsibility for damages on digital asset operators in accordance with the Electronic Financial Transactions Act in instances of hacking or pc system failures.”

It will seemingly deal with permitting the sale of home crypto property, topic to ample disclosure of data. Despite this, the important thing points stay unresolved, suggesting that the ultimate submission deadline will seemingly be pushed to the beginning of 2026.

Stablecoin Issuance Dispute Continues

As reported by Bitcoinist, the Financial Services Commission did not submit the extremely anticipated Digital Assets Act, which is predicted to deal with the issuance and distribution of Korean received (KRW)-pegged stablecoins.

The monetary regulator didn’t meet the December 10 deadline set by the South Korean ruling social gathering to submit the federal government’s laws to the National Policy Committee.

The invoice was delayed after the FSC and the Bank of Korea (BOK) have been unable to resolve their variations over the issuance of won-denominated stablecoins practically three weeks in the past.

The monetary authorities have been debating this challenge for months, with reviews in November suggesting that the long-awaited laws, which was anticipated to be permitted on the finish of this 12 months, risked being delayed.

The FSC and the BOK disagree on the extent of banks’ function regardless of agreeing that monetary establishments have to be concerned within the issuance of won-pegged tokens. The central financial institution has pushed for a consortium of banks proudly owning not less than 51% of any stablecoin issuer looking for approval within the nation.

Meanwhile, the FSC has shared issues that giving a majority stake to banks might cut back participation from tech companies and restrict the market’s innovation.

Yonhap News Agency highlighted that the monetary authorities additionally face different disagreements, together with the preliminary capital necessities for stablecoin issuers, with opinions starting from 500 million to 25 billion received, and whether or not to separate the stablecoin issuance and distribution features of exchanges.

An FSC official reportedly asserted that they’re “at present within the technique of step by step narrowing the variations in positions with the related companies,” whereas “discussing all prospects with an open thoughts.”

The report additionally famous that the ruling social gathering’s Digital Asset Task Force (TF) is allegedly making ready its personal model of the invoice, based mostly on the legislative proposals submitted by lawmakers.

Notably, latest reviews affirmed that the federal government’s proposal needs to be introduced by early subsequent month on the newest, because the built-in invoice have to be submitted in January 2026.