South Korea’s comprehensive “Digital Asset Basic Act” (Phase 2) is effectively dead for the year, pushed to the 2026 legislative calendar. The delay, confirmed by legislative sources Tuesday, stems from an unresolved power struggle between the Financial Services Commission (FSC) and the Bank of Korea (BOK) over a single, critical question: Who gets to print the digital Won?
The Receipt: The ‘51% Rule’ Deadlock
While the market anticipated a framework for stablecoin reserves and investor protection by year-end, the legislation stalled in committee. The breakdown centers on the BOK’s demand for strict monetary control.
According to local reporting, the central bank is insisting that only bank-led consortia be permitted to issue stablecoins. Specifically, the BOK is demanding a statutory requirement that commercial banks hold at least 51% equity in any stablecoin issuer to mitigate systemic risk.
The FSC pushed back. The regulator argues this bank-centric model would effectively ban fintech and blockchain-native firms from the market, stifling innovation in a sector where South Korea, known for its high retail volume, aims to compete globally.
“The impasse threatens to create prolonged uncertainty in one of the world’s most active crypto markets.”
Institutional Context: The Won-Peg Gap
This delay leaves a gaping hole in Korea’s crypto infrastructure. President Lee Jae-myung, elected earlier this year, previously identified a Won-backed stablecoin as a priority to counter the dominance of USD-pegged assets like Tether (USDT) and USDC in local trading pairs.
Without clear reserve guidelines (the draft bill proposed 100% backing in high-quality liquid assets), domestic institutions remain sidelined. The result? Korean exchanges will likely continue to rely on the “Kimchi Premium” arbitrage dynamics rather than efficient, on-chain Won liquidity.
Market Reaction: Apathy
Local markets shrugged off the news. The lack of immediate sell-pressure suggests the delay was largely priced in by institutional desks, who have grown accustomed to the legislative gridlock in Seoul. However, for fintech operators waiting for the green light to issue regulated tokens, the timeline just extended by another 12 months.
