What delayed South Korea crypto bill?

TLDR

South Koreas crypto bill was delayed because regulators are deadlocked over how to oversee won?pegged stablecoins and who can issue them.

1. The Bank of Korea wants bank?controlled issuers, while the Financial Services Commission prefers a more flexible model per a media report.
2. Disputes span issuer eligibility, 100% reserve custody in banks, and licensing authority, pushing submission into 2026 per a news update.
3. The delay adds uncertainty for exchanges, payment providers, and stablecoin firms as the bills second phase slips to 2026 per a regulatory summary.

Deep Dive

1. Issuer Authority

The core dispute is who gets to issue KRW?pegged stablecoins.

1. The central bank proposed limiting issuance to consortia where banks hold at least 51% ownership; the financial regulator argues that would stifle innovation by excluding tech firms, per a policy report.
2. Lawmaker summaries also cite an unresolved split between the Bank of Korea and the FSC on governance and oversight for issuers, per a regulatory note.

2. Rules Under Debate

Key provisions under discussion include strict reserve and custody rules and enforcement powers.

1. Drafts envision 100% reserves held in safe assets and fully segregated at banks or approved custodians to protect users, per a market update.
2. Authorities remain divided on licensing authority, reserve enforcement, and whether to create a dedicated oversight committee for stablecoins, per a regulatory summary.

3. Timeline And Impact

Submission is now targeted for 2026; operational clarity for firms is deferred.

1. Officials expect the Digital Asset Basic Acts next phase to be delayed to 2026 amid unresolved issues with stablecoin issuers and related organizations, per a news update.
2. The postponement creates planning uncertainty for exchanges, payment providers, and stablecoin projects until rules are finalized, per a regulatory summary.

Conclusion

Regulatory deadlock over KRW?stablecoin issuance and supervisionbank control versus broader issuer accesspushed South Koreas crypto bill into 2026. The trade?off is clear: tighter stability and consumer safeguards versus preserving innovation. Until consensus is reached on issuer eligibility, reserve custody, and enforcement, domestic market participants will face continued uncertainty.