Summary
South Korea's Digital Asset Basic Act (DABA) remains stalled in the National Assembly over the Bank of Korea vs. Financial Services Commission dispute on stablecoin issuer eligibility. The BOK wants bank-led consortiums holding 51%+ ownership; the FSC argues this suppresses fintech participation and cites EU MiCA where most licensed issuers are e-money institutions, not banks. Tokenized securities (STO) legislation has already passed (January 2026, effective ~January 2027). Stablecoin rules may be carved out as standalone legislation. The FSC earlier proposed requiring foreign stablecoin issuers to hold a Korean license with local branch/subsidiary. K-Bank's pilot operates under existing VAUPA framework while DABA remains pending. Passage within 2026 is possible but not guaranteed; full implementation unlikely before 2027.
Key Points
- DABA stalled over BOK vs. FSC dispute on stablecoin issuer eligibility
- BOK wants 51%+ bank ownership; FSC wants fintech participation
- STO legislation already passed (Jan 2026, effective ~Jan 2027)
- Stablecoin rules may become standalone legislation
- Foreign issuers likely need Korean license + local presence
- K-Bank pilot operates under existing VAUPA framework
- Passage within 2026 possible but not guaranteed
- Full DABA implementation unlikely before 2027
- President Lee Jae-myung pledged (June 29) to allow won-backed stablecoins