The South Korea Digital Asset Basic Act debate has moved beyond the June election window after lawmakers left the bill off a key May 12 agenda.
The delay postpones expected rules for stablecoins, crypto exchanges, custody standards, and institutional market access. It also extends uncertainty in one of Asia’s most active retail crypto markets, where investors continue to wait for clearer national rules.
Bill Review Moves Beyond Election Period
The National Assembly’s National Policy Committee did not include the Digital Asset Basic Act in its final bill review subcommittee meeting before recess. As a result, lawmakers now appear unlikely to review the proposal before the June 3 local elections.
The delay adds another setback to a bill that has already faced months of policy disagreement. The main dispute centers on stablecoin oversight, with the Financial Services Commission and the Bank of Korea holding different views on regulatory control.
The bill forms the second stage of South Korea’s crypto rulebook. The country already passed the Virtual Asset User Protection Act in 2023, which focused mainly on investor safeguards. The new proposal would expand regulation across licensing, disclosures, custody, market conduct, and stablecoin reserves.
Stablecoin Plans Face More Uncertainty
The Digital Asset Basic Act would require crypto firms to meet licensing and disclosure standards. It would also ban insider trading and market manipulation, create a Digital Asset Committee, and set custody rules for customer assets.
Stablecoin issuers would need at least 50 billion won in capital under the proposal. That amount equals about $35 million and mirrors standards used for electronic money businesses.
However, several major issues remain unresolved. Lawmakers have not agreed on whether banks should hold majority stakes in stablecoin ventures. They also still need to settle ownership limits for exchanges and other virtual asset firms.
The delay affects companies preparing to issue stablecoins and institutional crypto services. President Lee Jae Myung has supported a won-backed stablecoin as a national priority, arguing that it could reduce reliance on dollar-linked tokens such as USDT and USDC.
South Korea Trails Global Rulemaking Pace
South Korea remains a major crypto market, with about 9.7 million investors and daily exchange volumes that can exceed 11 trillion won during active trading periods. Upbit, Bithumb, Coinone, Korbit, and Gopax continue to dominate licensed domestic trading.
However, the country now risks falling behind other major markets. The European Union implemented MiCA in 2024, while Japan introduced stablecoin rules in 2023. Singapore and Hong Kong have also advanced licensing frameworks for digital asset firms.
Without final rules, global exchanges, banks, fintech firms, and payment companies lack clarity on cross-border operations. Lawmakers may revisit the bill in the second half of 2026.
