Summary
South Korea's ruling Democratic Party of Korea has agreed to accelerate the Framework Act on Digital Assets, the Phase 2 legislation that would legalize and regulate won-denominated stablecoins. At a July 20 closed-door briefing with the Financial Services Commission (FSC), the party committed to holding subcommittee meetings of the National Assembly's Political Affairs Committee twice a month, with a target of introducing the bill in September 2026.
The renewed urgency is driven by the U.S. GENIUS Act's January 2027 effective date, which would allow dollar-denominated stablecoins to reach Korean users before a regulated won alternative exists. Two key fights remain unresolved: the "51% rule" championed by the Bank of Korea requiring bank-centered consortiums to issue won stablecoins, and whether to uniformly apply 15-20% equity ownership regulations to virtual asset exchanges including Upbit, Bithumb, Coinone, Korbit, and Gopax. Ten digital-asset and stablecoin bills are already pending in the National Assembly.
Key Facts
- Ruling party: Democratic Party of Korea; briefing with FSC on July 20
- Cadence: subcommittee meetings at least twice a month
- Target: bill introduction in September 2026
- Key driver: U.S. GENIUS Act effective January 2027
- "51% rule": Bank of Korea wants bank-centered consortiums to issue won stablecoins
- Exchange equity rules: 15-20% ownership regulations for Upbit, Bithumb, Coinone, Korbit, Gopax
- Pending bills: 10 digital-asset and stablecoin bills in National Assembly
- Government commitment: "2026 Economic Growth Strategy" (July 14) targets H2 2026 enactment
- FSC Chairman Lee Won-geon: reported stablecoin institutionalization as priority
- Party convention: August 17; new Policy Committee Chairman to follow
- Lawmaker Park Min-kyu: "plans to push for the proposal in September"
- Previous assessment: passage in 2026 was "virtually difficult" just weeks ago
Why It Matters
South Korea is one of the most active retail crypto markets globally, and the GENIUS Act's January start date has given Seoul a hard external deadline. Without a domestic framework, dollar-denominated stablecoins could reach Korean users before a regulated won alternative exists. The bank-versus-fintech question at the heart of the "51% rule" is the defining structural choice of the global stablecoin era, echoing deposit-flight fears in the U.S. and ownership debates in Europe's MiCA.