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South Korea Pushes Crypto Law to 2026 as Stablecoin Control Fight Drags On

The draft would mandate fully custodied reserves and impose no-fault liability on platforms.

Overview

  • The Bank of Korea is pressing for bank‑led consortia with at least 51% bank ownership and sought a licensing veto body, a stance the Financial Services Commission rejects as anti‑competitive.
  • Issuers would need to hold 100% or more of reserves in bank deposits or government bonds, segregated and entrusted to licensed custodians such as banks.
  • Digital asset providers would face stricter disclosure and advertising rules, with liability for user losses from hacks or outages even without proven negligence.
  • Lawmakers have paused the government submission and the ruling Democratic Party is preparing a consolidated proposal, extending the timeline into 2026.
  • Earlier drafts indicate foreign stablecoins would require local licensing and a branch or subsidiary, while disputes persist over capital requirements and whether to separate issuance and distribution functions.