Crypto regulation in South Korea is now in a race against time. Financial Services Commission (FSC) Chairman Kim Byoung-hwan promised before the plenary session of the National Assembly’s Political Committee to accelerate consultations on the Digital Asset Framework Act. The target is clear: the new rules are scheduled to pass during the autumn 2026 parliamentary session. This promise was made in response to pressure from Democratic Party lawmaker Lee Kang-il, who highlighted the swift movements of U.S. regulators like the SEC and CFTC. Lee warned that South Korea risks falling further behind other G20 nations if it allows its crypto ecosystem to operate without a mature legal framework.
Phase Two Stalled over Stablecoins
The fast-tracked legislation marks the second phase of South Korea’s digital asset regulations. Its scope extends to regulating the issuance procedures of stablecoins, operational standards for virtual asset service providers (VASPs), public reporting obligations, and corporate internal control mechanisms. To meet the deadline, the government and the ruling party plan to combine up to 10 pending digital asset bills in parliament. All of these drafts will be merged into a single comprehensive regulatory package in 2026.
The pace of passage has hit a major obstacle: a dispute over the authority to issue won-based stablecoins. The Bank of Korea insists on maintaining control by supporting an issuance model led directly by the banking sector. On the other hand, the FSC and several other agencies have yet to agree on which institution is authorized and safest to issue this local stablecoin to the public.
Multiple Targets for the Rest of the Year
The finalization of the phase two legislation is running parallel to South Korea’s other major agendas. The government previously revised the Foreign Exchange Transactions Act to accommodate cross-border crypto transfers. This key revision was enacted on June 2 and will come into full effect in December 2026, following a six-month grace period.
This step complements the July 2026 regulatory roadmap, which outlines several essential targets. The document establishes the framework for tokenized government bonds, the opening of spot crypto ETF pathways, and technical guidelines for cross-border stablecoin transactions.
For the crypto industry players and local exchanges, the series of deadlines spanning from autumn to the end of the year will directly determine their business boundaries. The upcoming parliamentary decision will provide a definitive answer: whether they can begin rolling out new services, or if they must wait again as domestic regulators continue to clash over control of the stablecoin ecosystem.
Reported from crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
