South Korea accelerates second-phase stablecoin bill

TLDR

South Korea is speeding up work on a second-phase digital asset law that will put stablecoins and broader crypto businesses under a detailed regulatory framework.

1. The new bill, called the Digital Asset Basic/Framework Act, builds on South Koreas 2024 user-protection law and is targeted for introduction during the fall legislative session.
2. It is expected to set rules for stablecoin issuance, reserves, licensing of virtual asset service providers (VASPs), disclosures, internal controls, and potentially regulated spot crypto ETFs.
3. Key debates remain over who can issue won stablecoins and how exchanges are supervised, so passage timing and final requirements are still uncertain but are likely to shape Asian crypto rules.

Deep Dive

1. What The Second-Phase Bill Is

South Korea already has a first-phase Virtual Asset User Protection Act, in force since July 2024, focused on safeguarding customer assets and market integrity.

Regulators now want a broader Digital Asset Basic/Framework Act that consolidates around ten pending crypto bills into one package and is being pushed for introduction in the fall regular session of the National Assembly, according to local reporting and regulator briefings.

This second phase is meant to move from pure investor protection toward full market structure rules for digital assets, including stablecoins and ETFs, similar in scope to the EUs MiCA regime.

2. How It Could Reshape Stablecoins And Crypto Services

Stablecoin regulation is at the center. The bill is expected to define who can issue stablecoins, how reserves must be held and audited, redemption rights, and circulation rules, as described in government consultations on the Digital Asset Framework Act.

It also aims to formalize licensing and reporting standards for VASPs, clarify rules for spot crypto ETFs, and strengthen internal controls and disclosure obligations for crypto businesses. Combined with updated foreign exchange and Financial Intelligence Unit rules on cross-border transfers and self-hosted wallets, this would give South Korea one of Asias more comprehensive stablecoin and crypto regimes.

3. Unresolved Issues And What To Watch Next

Despite the accelerated timetable, key points are still contested. The Bank of Korea favors a bank-led model for won-denominated stablecoins, given the impact on payments and monetary policy, while industry pushes for more flexible issuer eligibility.

Analysts also highlight unresolved questions such as ownership caps for large exchanges and the exact licensing standards for fintechs offering cross-border virtual asset services. Even though officials are signaling urgency, reports caution that a fall introduction does not guarantee rapid passage if these disputes persist.

For crypto users and projects, the next key signals will be the publication of a draft bill, any compromise on bank versus non-bank stablecoin issuers, and how closely the final act mirrors MiCA or emerging US stablecoin rules.

Conclusion

South Koreas move to accelerate its second-phase stablecoin and digital asset bill shifts the country toward a clearer, more bank-like framework for crypto, especially for stablecoins at the core of trading and payments. The details are still in flux, but once a draft lands in parliament, the outcomes on issuer eligibility, VASP licensing, and ETF treatment will be important markers for how one of Asias most active crypto markets balances innovation with tighter oversight.