South Korea’s Crypto Regulation Stalemate Reveals Power Struggle
South Korea's ambitious Digital Asset Basic Act faces delays until 2026 amid institutional clashes over stablecoin governance. The proposed framework would impose bank-like reserve requirements on issuers—100% backing in low-risk assets—while expanding oversight to all crypto service providers.
Financial authorities, tech firms, and banks remain deadlocked on issuer authorization. The impasse reflects deeper tensions between traditional finance gatekeepers and crypto-native players seeking legitimacy.
Investor protections mirror conventional financial standards, including strict disclosure rules and advertising controls. The legislation's postponement leaves Korea's crypto market in regulatory limbo as global jurisdictions race to establish frameworks.
