South Korea set to unveil digital asset bill amid stablecoin dispute

South Korea’s Financial Services Commission (FSC) is expected to publicly release its draft Digital Asset Framework Act, also known as the phase-two digital asset law, in the coming weeks. The bill could be announced as early as this month, or by early next month at the latest, ahead of the ruling party’s plan to introduce a unified bill to the National Assembly in January.

The FSC is currently coordinating with the Bank of Korea (BoK), with the main disagreement centered on who should be allowed to issue stablecoins. The BoK argues that bank-led ownership is necessary for monetary and financial stability, while the FSC counters that such a model is rare globally, citing examples from the EU and Japan.

The draft bill is also expected to introduce a comprehensive regulatory framework for digital assets, covering licensing, business conduct rules, capital and prudential requirements, listing and disclosure standards, as well as supervision and enforcement.