South Korea has postponed the implementation of its Digital Asset Basic Act to 2026 due to conflicts between the Financial Services Commission and the Bank of Korea over stablecoin issuer regulations.
The delay impacts the regulatory landscape, restricting domestic stablecoin issuance and increasing reliance on foreign alternatives like USDC, while highlighting tensions within South Koreaโs financial authorities.
South Koreaโs Digital Asset Basic Act delay centers around disputes. The Financial Services Commission (FSC) and the Bank of Korea (BOK) disagree over stablecoin issuer rules, pushing the legislation to 2026.
The FSC aims for a flexible framework promoting blockchain, while the BOK insists banks control stablecoin stakes, advocating for banks as primary issuers.
Stablecoin Regulation Delay Impacts Market Dynamics
The delay affects local stablecoin issuance, directing reliance on foreign alternatives like USDC. Korean exchanges see increasing volumes but depend on fees, highlighting market challenges.
Experts suggest potential financial impacts as exchanges adapt to prolonged foreign stablecoin dependency. Regulatory tensions could influence broader blockchain investments, while technological innovations remain uncertain, highlighting industry challenges. As one analyst noted, โpast delays have set precedents that benefit foreign issuers.โ
2026 Target Date Marks Significant Policy Shift
Previous conflicts between regulatory bodies have surfaced, yet the 2026 delay is a notable response. Past industry regulatory issues, though unresolved quickly, havenโt stalled relevant advancements to this extent.
Kanalcoin analysts believe the delay may encourage foreign stablecoin dominance, potentially impacting Korean market development. Historical trends suggest such delays can slow domestic innovation, but opportunities may arise for flexible frameworks.
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