The introduction of a stablecoin bill pioneered by South Korean President Lee Jae-myung will reportedly be delayed into 2026 on concerns about issuers.
South Korean lawmakers have reportedly delayed submission of a cryptocurrency bill that could allow the issuance of domestic stablecoins as key issues remain unresolved.
According to a Tuesday Yonhap News report, officials in South Korea’s government were to work on the Digital Asset Basic Act, but expected to submit the bill sometime in 2026. The reported delay was due to “major issues that raise disagreements with relevant organizations, including stablecoin issuers.”
The bill, in June, would permit the issuance of stablecoins pegged to the won and is expected to boost South Korea’s crypto market. Under the proposed bill, stablecoin issuers would reportedly be required to entrust all their reserve assets to authorized custodies, like banks.
According to the report, the disagreements over the crypto bill included whether it was necessary to authorize a group of organizations to oversee stablecoin issuers prior to approval. The country’s Financial Services Commission is reviewing the proposal, but also considering limiting financial institutions’ role in stablecoins to encourage participation from technology companies.
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Addressing the issuance of local stablecoins was one of South Korean President Lee Jae-myung’s prior to being sworn into office in June. He also advocated for the country’s national pension fund to invest in digital assets and backed the issuance of exchange-traded funds tied to Bitcoin ().
Terraform Labs co-founder Do Kwon, who was recently in prison in the United States related to his role in the collapse of the company’s ecosystem, could serve part of his prison time in South Korea, where he holds citizenship. He could also face up to 40 years in prison locally, according to a filing from Kwon’s legal team.
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