South Korea’s highly anticipated cryptocurrency legislation, which aims to regulate the issuance and use of stablecoins, has faced yet another delay as lawmakers struggle to reach consensus on who should be authorized to issue these digital assets.
The proposed law, intended to provide clarity and legal oversight for the fast-growing stablecoin market, has been under discussion for over two years. Stablecoins, cryptocurrencies pegged to traditional assets like the U.S. dollar, have become increasingly popular in South Korea, fueling the need for a clear regulatory framework.
Disagreements have arisen over whether only licensed financial institutions should be allowed to issue stablecoins, or if tech companies and fintech startups should also have the right to participate. Lawmakers and regulators are also debating requirements for reserves, transparency, and consumer protections to prevent systemic risks.
The delay comes as South Korea aims to balance innovation in digital finance with safeguarding the financial system. Experts warn that without regulatory clarity, investors and issuers may face legal uncertainties, potentially slowing adoption of blockchain-based financial solutions.
The government has indicated that it remains committed to finalizing the law, but no timeline has been confirmed. In the meantime, the Korean crypto industry continues to operate in a semi-regulated environment, with market participants closely watching for any future guidance from financial authorities.
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