While the global stablecoin market expands, expectations are spreading that enacting a Framework Act on Digital Assets within the year will be virtually difficult in Korea. With the Financial Services Commission (FSC) reluctant to put forward a government bill, and given the National Assembly's committee formation schedule, the prevailing forecast is that the matter will carry over into next year.
According to the financial industry Monday, discussions on the Framework Act on Digital Assets are expected to resume after the launch of the second-half National Policy Committee, but producing legislative results in a short period is projected to be difficult. Within the ruling Democratic Party, consensus on the need to introduce a won-backed stablecoin has not been sufficiently formed, and opinions on key issues must be coordinated again with the newly formed policy committee members.
No notable movement is being detected within the government either. As recently as last year, the introduction of a won-backed stablecoin appeared to be gaining rapid momentum, but the atmosphere has changed this year. In particular, there is much talk that the introduction of a won-backed coin has been pushed relatively back in the government's policy priorities. An official at the financial authorities said, "Considering the Democratic Party's national convention schedule for electing a new party leader and the parliamentary audit, the bill should already have come out in order to discuss the Framework Act on Digital Assets within the year," adding, "We view it as virtually difficult to produce results this year."
The market shares the same view. An official in the blockchain industry said, "I understand there are also lawmakers raising questions about why institutionalization is needed now, given that domestic payments face no major inconvenience even without a won-backed stablecoin," and "Since discussions must start over with the new policy committee members, the prevailing forecast is that it will not be easy to process the bill within this year."
The need for coordination with multiple ministries during the legislative process is also cited as a variable. In particular, to consider the future overseas use of a won-backed stablecoin in line with the implementation of the GENIUS Act, the U.S. stablecoin regulatory law, the issue of the won's offshore circulation must also be discussed. In this process, the explanation is that consultation with related agencies such as the Ministry of Economy and Finance and the Bank of Korea, not just the FSC, is inevitable.
With the situation as it is, concerns are growing that Korea's competitiveness will inevitably lag behind that of the United States and Europe. In the industry, there are also predictions that at this rate the bill may not take effect until 2028. Another industry official said, "Since stablecoins are directly linked to the movement of funds, the Korea Customs Service is also an important stakeholder in terms of tax evasion and foreign exchange management," and "Since this is a matter requiring coordination of opinions among multiple ministries and stakeholders, there is a high possibility that legislative discussions will drag on longer than expected."
