South Korea Delays Crypto Regulation to 2026 Amid Stablecoin Dispute
South Korea’s comprehensive crypto legislation has been postponed to 2026 as regulators clash over stablecoin issuance rules. The Financial Services Commission (FSC) is drafting a Digital Asset Basic Act that would mandate 100% reserve backing for stablecoins—held exclusively in bank deposits or government bonds—to prevent another Terra-Luna collapse scenario.
Authorities aim to segregate reserves through licensed custodians, creating a firewall against issuer insolvency. The delay stems from ideological divisions: some advocate for open issuance with strict oversight, while others demand bank-exclusive rights to mint stablecoins.
This impasse reflects global regulatory tensions as jurisdictions race to balance innovation with consumer protection. The proposed framework WOULD set South Korea’s first unified standards for crypto exchanges, wallets, and token offerings—potentially reshaping Asia’s third-largest crypto market.
