South Korea's Financial Services Commission (FSC) is advancing a consolidated digital asset bill that will merge stablecoin regulations with comprehensive rules for cryptocurrency exchanges. The proposal, presented by FSC Chairman Lee Eog-weon during a National Assembly Political Affairs Committee meeting on July 29, 2026, seeks to establish a single legal framework governing issuers, trading platforms, investor protection, and market conduct across the country's digital asset sector.
This legislation represents the second phase of South Korea's regulatory framework, following the Virtual Asset User Protection Act that took effect in July 2024. That initial phase focused on safeguarding customer assets, strengthening oversight of abnormal trading, and expanding enforcement against unfair practices. Since its enactment, authorities have reported or referred more than 30 suspected market abuse cases, highlighting the need for stricter comprehensive rules.
Key details still under debate include which entities should issue won-backed stablecoins, with a possible bank-led consortium model being discussed but not formally adopted. Ownership limits for major exchanges like Upbit, Bithumb, Coinone, Korbit, and Gopax are under review, with equity caps between 15% and 20% proposed. Corporate participation in the crypto market, restricted since 2017, is also being reconsidered as part of the second-phase legislation.
South Korea currently has ten separate cryptocurrency and stablecoin bills pending in the National Assembly. The FSC hopes a single government-backed bill will reduce regulatory overlap and accelerate legislative progress. The country's approach contrasts with other regulatory models: the U.S. uses the GENIUS Act for payment stablecoins, the EU integrates stablecoins under MiCA, Hong Kong operates a dedicated licensing system, and Singapore maintains separate reserve and redemption standards.
Officials have not yet confirmed the submission date or final structure of the bill, leaving stablecoin issuance rules, exchange ownership limits, and corporate participation as the central unresolved issues.
