South Korea has indefinitely postponed the presentation of a significant cryptocurrency bill known as the Digital Asset Basic Act, which was primarily aimed at permitting the issuance of stablecoins linked to the national currency, the won. Proposed by the ruling party in June, the bill is now unlikely to be introduced until 2026 due to disagreements among relevant institutions, particularly those issuing stablecoins, over key provisions. The legislation seeks to promote South Korea’s crypto market by granting legal status to won-linked stablecoins and requires issuers to hold reserve assets with authorized banks or custodians. However, there is contention over whether a specific regulatory body should be empowered to oversee stablecoin issuers. The Financial Services Commission is reviewing the proposal and considering limiting financial institutions’ roles to encourage greater participation from technology companies. This legislative effort aligns with President Lee Jae-myung’s commitments to support domestic stablecoin issuance and national pension fund investments in digital assets, as well as his backing of Bitcoin-linked exchange-traded funds. Meanwhile, Terraform Labs co-founder Do Kwon, a South Korean citizen, has been sentenced to 15 years in prison in the United States for involvement in the company’s collapse and may serve part of his sentence in South Korea, where penalties could be harsher. These developments highlight the ongoing challenges in South Korea’s crypto regulation amid the complex global landscape of cryptocurrency laws.
Source: binance
