South Korea targets November review for second stage crypto legislation

South Korea’s Financial Services Commission has set November for a National Assembly subcommittee review of the Digital Asset Framework Act, rejecting claims that work on the country’s second stage crypto legislation has been delayed.

According to Seo Na yoon, head of the FSC’s virtual asset division, the regulator and lawmakers are moving in the same direction on legislation covering digital asset issuance and distribution, including stablecoins. Speaking at a National Assembly seminar in Seoul on Sept. 22, Seo said differences remain over when the government will submit its draft, but the November review remains part of the planned timetable.

“The FSC is not dragging its feet at all. We share the same view,” Seo said, responding to criticism over the pace of the legislation. “The direction has already been set, and while detailed discussions may be necessary in the process, there is certainly no intention on the FSC’s part to delay.”

Seo said the regulator wants the legislation passed quickly and expects discussions to proceed using bills that lawmakers have already introduced alongside the government’s proposal.

Digital Asset Framework Act is headed for November review

Ten digital asset and stablecoin bills are currently pending in the National Assembly, giving lawmakers existing proposals to work from before the government completes its version.

Seo said both sets of proposals cover issuance and distribution across the digital asset market, with the FSC working through detailed provisions along the same general direction as lawmakers.

The November timetable follows earlier pressure on the regulator to accelerate the process. In August, crypto.news previously reported that FSC Chairman Kim Byoung hwan said the government would accelerate legislative consultations as lawmakers sought to complete the framework during the fall.

During a National Assembly Political Affairs Committee meeting at the time, Democratic Party lawmaker Lee Kang il questioned when the government planned to submit its own bill. The proposed framework was expected to cover stablecoin issuance, virtual asset service providers and other areas of the digital asset market.

Seo said on Sept. 22 that personnel changes within the FSC would not alter the legislative timetable.

“A change in the responsible official cannot cause a delay in the schedule,” she said. “We will make every effort to ensure discussions proceed according to the planned timeline.”

The FSC had previously told the National Assembly that it planned to work with the ruling Democratic Party on a consolidated digital asset bill incorporating work around the 10 proposals already before lawmakers.

Rep. Min Byung duk introduced one of the proposals in June 2025. Democratic Party lawmakers Ahn Do geol, Kim Hyun jung, Lee Kang il and Park Sang hyuk have since submitted their own proposals, while People Power Party lawmakers Kim Eun hye, Kim Jae seop, Choi Bo yoon, Lee Sung kwon and Kim Sung won have introduced separate bills.

Min recently told reporters that a public hearing on the Digital Asset Framework Act was expected at the end of September.

Stablecoin rules remain central to the legislation

South Korea currently regulates the sector through the Virtual Asset User Protection Act, its first stage crypto legislation focused primarily on user protection and unfair trading practices. The second stage framework is expected to address areas including issuance, disclosures and stablecoin regulation.

Stablecoin issuer eligibility has remained one of the issues under discussion. The Bank of Korea has supported a bank led structure for won denominated stablecoins, citing possible effects on monetary policy, payments and financial stability.

In July, the central bank reaffirmed its bank led model as policymakers continued negotiations over the second stage legislation. The BOK said banks should initially take a leading role in issuing won backed stablecoins through consortiums.

South Korea’s government has meanwhile placed digital asset legislation within its policy plans for the second half of 2026. A roadmap announced in July included stablecoin legislation and crypto ETFs, alongside tokenized government bonds and a legal framework for cross border stablecoin transactions.

The FSC said in its presidential business briefing this year that it planned to complete second stage legislation related to stablecoins within 2026.

US stablecoin rules add pressure to South Korea’s timetable

U.S. regulation featured prominently during the Sept. 22 seminar, where Min said developments surrounding the CLARITY Act and the GENIUS Act had given South Korea a window to complete its own legislation.

The Senate recently failed to advance the CLARITY Act after a 50 to 49 cloture vote fell short of the 60 votes needed to begin debate. The proposal deals with digital asset market structure, while the GENIUS Act established a federal framework for payment stablecoins.

Min focused on the GENIUS Act’s Jan. 18, 2027 effective date, saying a large number of stablecoin projects were being prepared in the U.S.

“When I went to the U.S. to check, there are 200 [stablecoins] being prepared in the market right now,” Min said. “If even a few dozen are approved after the law takes effect on Jan. 18, those few dozen will pour into [our market].”

Min argued that South Korea would need its legislation in place if domestic companies and consumers were expected to wait for locally regulated products.

U.S. regulators have faced their own implementation delays. The GENIUS Act was signed into law on July 18, 2025 and gave federal agencies one year to complete implementing rules. That deadline passed in July 2026 without agencies finalizing all required regulations, while the law’s Jan. 18, 2027 effective date remained unchanged.

The Office of the Comptroller of the Currency is expected to finalize its stablecoin rule later in 2026, while other federal agencies continue work on requirements covering reserves, redemptions, capital, liquidity and compliance.

At the Seoul seminar, MRI CEO Kim Jong seung presented on changes in U.S. crypto fundraising policy and their market effects. Han Seo hee, an attorney at Bae, Kim & Lee LLC, discussed fundraising conditions for South Korean digital asset companies and the legislative agenda.

A subsequent panel on domestic crypto fundraising included Sogang University Business School professor Jung Yoo shin, EQBR Holdings Chairman Lee Jung keun, Avalanche Vice President of Global Business Development Kim Yong il and Parameta CEO Kim Jong hyup.

The seminar was hosted by Democratic Party lawmakers Min Byung duk, Park Min kyu and Lee Kang il and organized by digital asset research institution MRI. Min serves as senior vice chair of the Democratic Party’s policy committee.