Korea's Stablecoin Standoff: Banks Keep the Keys, Fintech Drives 🚗

South Korean policymakers are weighing a compromise that would let banks hold majority stakes in stablecoin issuers while fintech and non-bank firms run day-to-day operations, according to a policy report published Wednesday by Hashed Open Research and the Solana Policy Institute. The report summarizes a June 23 symposium attended by lawmakers, legal experts and industry participants, and argues that interim stablecoin guidance is needed before South Korea's Digital Asset Basic Act is finalized.

The Digital Asset Basic Act would create South Korea's first comprehensive digital asset framework, covering stablecoins, issuance rules, disclosure requirements and market conduct. Lawmakers have yet to reconcile multiple competing bills, with disagreements over stablecoin issuance repeatedly delaying the legislation. Democratic Party lawmaker Ahn Dogeol said the proposed ownership split was under active consideration as a way to break the deadlock.

Kim Hyobong, a partner at Bae, Kim & Lee, said South Korea should specify which crypto activities financial institutions are permitted to conduct, resolve licensing uncertainty for stablecoin payments and set rules governing foreign-issued stablecoins. Kim also urged regulators to follow the European Union's phased approach under the Markets in Crypto-Assets Regulation, introducing stablecoin issuance rules ahead of the broader Digital Asset Basic Act rather than waiting for the omnibus framework.

The report comes as South Korean policymakers juggle parallel digital asset priorities, including an opposition push to repeal the country's crypto tax framework. Related reporting has noted that stablecoin rulemaking is advancing on a separate track from those tax deliberations. The symposium participants said phasing in stablecoin-specific rules could narrow the gap between bank-led and non-bank issuance models without forcing a premature resolution of the underlying Digital Asset Basic Act.