The submission of South Korea’s long-awaited crypto invoice continues to face hurdles because of the ongoing disagreements between the primary regulatory businesses over insurance policies associated to stablecoin issuers.
South Korea’s Digital Belongings Act Delayed
On Tuesday, native information retailers reported that South Korea’s Second Part of the Digital Asset Consumer Safety Act will likely be delayed till subsequent yr as monetary authorities proceed to conflict over stablecoin issuance-related laws.
In response to Yonhap Information Company, monetary circles and the Nationwide Meeting shared on December 30 that the primary insurance policies of the crypto framework have been largely determined.
Notably, the Monetary Providers Fee (FSC)’s draft is predicted to incorporate investor safety measures resembling no-fault legal responsibility for crypto asset operators and isolation of chapter dangers for stablecoin issuers.
As a part of investor safety measures, stablecoin issuers will probably be required to handle reserve property in deposits and authorities bonds. As well as, they are going to be required to deposit or entrust a minimum of 100% of the issuance quantity with custodians resembling banks.
The invoice might additionally require crypto asset operators to adjust to disclosure obligations in addition to phrases and situations. Furthermore, it could “impose strict legal responsibility for damages on digital asset operators in accordance with the Digital Monetary Transactions Act in circumstances of hacking or laptop system failures.”
It is going to seemingly handle permitting the sale of home crypto property, topic to adequate disclosure of knowledge. Regardless of this, the important thing points stay unresolved, suggesting that the ultimate submission deadline will probably be pushed to the start of 2026.
Stablecoin Issuance Dispute Continues
As reported by Bitcoinist, the Monetary Providers Fee didn’t submit the extremely anticipated Digital Belongings Act, which is predicted to deal with the issuance and distribution of Korean received (KRW)-pegged stablecoins.
The monetary regulator didn’t meet the December 10 deadline set by the South Korean ruling celebration to submit the federal government’s laws to the Nationwide Coverage Committee.
The invoice was delayed after the FSC and the Financial institution of Korea (BOK) had been unable to resolve their variations over the issuance of won-denominated stablecoins practically three weeks in the past.
The monetary authorities have been debating this difficulty for months, with stories in November suggesting that the long-awaited laws, which was anticipated to be authorised on the finish of this yr, risked being delayed.
The FSC and the BOK disagree on the extent of banks’ position regardless of agreeing that monetary establishments should be concerned within the issuance of won-pegged tokens. The central financial institution has pushed for a consortium of banks proudly owning a minimum of 51% of any stablecoin issuer in search of approval within the nation.
In the meantime, the FSC has shared issues that giving a majority stake to banks might cut back participation from tech companies and restrict the market’s innovation.
Yonhap Information Company highlighted that the monetary authorities additionally face different disagreements, together with the preliminary capital necessities for stablecoin issuers, with opinions starting from 500 million to 25 billion received, and whether or not to separate the stablecoin issuance and distribution capabilities of exchanges.
An FSC official reportedly asserted that they’re “at present within the strategy of steadily narrowing the variations in positions with the related businesses,” whereas “discussing all potentialities with an open thoughts.”
The report additionally famous that the ruling celebration’s Digital Asset Activity Power (TF) is allegedly getting ready its personal model of the invoice, primarily based on the legislative proposals submitted by lawmakers.
Notably, current stories affirmed that the federal government’s proposal must be introduced by early subsequent month on the newest, because the built-in invoice should be submitted in January 2026.
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