South Korea Delays Crypto Bill Until After June Elections, Stablecoin Rules Hang in Limbo

South Korea has postponed debate on its digital asset bill until after the June 3 local elections, leaving stablecoin capital rules unresolved.

The delay keeps roughly 9.7 million local crypto investors in regulatory limbo while global rivals advance.

Lawmakers removed the Digital Asset Basic Act from the National Policy Committee’s agenda on May 12, the final review session before parliamentary recess. The bill, which would be South Korea’s second major crypto framework after the 2023 Virtual Asset User Protection Act, remains stalled amid disputes between the Financial Services Commission and the Bank of Korea over stablecoin oversight.

Under the proposed bill, stablecoin issuers must hold at least 50 billion won (~$35 million) in capital, a threshold already applied to electronic‑money businesses. The legislation also seeks to license crypto firms, ban insider trading, create a Digital Asset Committee, and set custody and reserve rules for customer assets.

Approximately 9.7 million South Koreans, about 19 % of the population, hold crypto assets, according to recent estimates. Daily trading volume on the country’s five licensed exchanges—Upbit (BTC), Bithumb (ETH), Coinone, Korbit, and Gopax—can exceed 11 trillion won ($7.9 billion) during active periods, rivaling major Asian markets.

Market data shows Bitcoin (BTC) trading near $27,000, up 2.1 % over the past week with a market cap of roughly $530 billion. Ethereum (ETH) sits around $1,800, market cap near $220 billion. Stablecoin USDC holds a market cap of about $30 billion, while USDT exceeds $80 billion, underscoring the scale of dollar‑pegged assets that Korean firms aim to compete with.

The postponement means companies planning won‑backed stablecoins or institutional crypto services cannot finalize licensing or reserve structures. President Lee Jae‑myung has cited a won‑pegged stablecoin as a national priority to reduce reliance on USD‑linked tokens, but without clear rules, Korean banks and fintechs remain hesitant to launch consortia targeting late 2026.

Globally, the EU’s MiCA framework is fully active, Japan updated its Payment Services Act for stablecoins in 2023, and Singapore and Hong Kong have rolled out licensing systems. South Korea’s delay risks slowing stablecoin‑based payment corridors across Asia‑Pacific and may push global exchanges to seek alternative jurisdictions for regional operations.

Watch for the post‑election legislative agenda: if the Digital Asset Basic Act resumes in the second half of 2026, stablecoin capital rules, bank ownership limits, and exchange licensing will be clarified, potentially triggering a wave of won‑pegged stablecoin launches and institutional crypto activity.