South Korea Hits Pause on Won-Backed Stablecoins

[cryptoenthusiast]

South Korean lawmakers have delayed submitting the Digital Asset Basic Act, a bill that could allow the issuance of domestic won-pegged stablecoins. According to local reports, unresolved disagreements between regulators and stablecoin issuers mean the legislation is now expected sometime in 2026 rather than sooner.

The proposed framework, introduced by the ruling Democratic Party of Korea, aims to legitimize stablecoins while imposing strict safeguards. One key provision would require issuers to place all reserve assets with approved custodians such as banks — a measure supporters say boosts trust, but critics argue could limit innovation.

[96f402f86e]

stablecoins always get stuck between “protect users” and “dont kill innovation”