South Korea’s Financial Services Commission (FSC) said its digital asset legislation remains on track for a November review, as regulators and lawmakers work toward a broader rulebook for the sector. The planned framework is expected to cover issuance, distribution, stablecoins, disclosures, and requirements for virtual asset service providers.
FSC: No Delays Planned
Speaking at a National Assembly seminar in Seoul on September 22, Seo Na Yoon, head of the FSC’s virtual asset division, said the regulator shares lawmakers’ overall legislative direction and does not intend to slow the process. “The FSC is not dragging its feet at all. We share the same view,” Seo said.
She acknowledged that disagreements remain over when the government will submit its draft, but said the November review remains on the timetable. She also said detailed talks may continue, while emphasizing that the regulator has no intention of delaying the legislation.
Ten Bills Already Before Lawmakers
Seo said the FSC wants lawmakers to pass the legislation quickly and expects discussions to use both the government’s draft and bills already introduced in the National Assembly. Ten digital asset and stablecoin bills are currently pending, giving legislators a foundation for negotiations before the government completes its own version.
The FSC is working through detailed provisions while following the same broad direction as lawmakers, she added. The challenge now is how quickly those proposals can be consolidated into one workable framework.
November Timeline Follows Pressure for Faster Action
The November schedule comes after earlier calls for the FSC to speed up the process. In August, FSC Chairman Kim Byoung Hwan said the government would accelerate legislative consultations as lawmakers pushed to finish the framework during the fall.
At a National Assembly Political Affairs Committee meeting, Democratic Party lawmaker Lee Kang Il asked when the government would submit its bill. The planned framework is expected to address stablecoin issuance, virtual asset service providers, and other parts of the market.
Seo said personnel changes inside the FSC would not affect the timeline. “A change in the responsible official cannot cause a delay in the schedule,” she said, adding that the agency would work to keep discussions on the planned track.
Lawmakers Build on Pending Proposals
The FSC previously told the National Assembly that it planned to work with the ruling Democratic Party on a consolidated digital asset bill, incorporating input from the 10 proposals already before lawmakers. Several lawmakers have filed separate bills, including Rep. Min Byung Duk, Democratic Party lawmakers Ahn Do Geol, Kim Hyun Jung, Lee Kang Il and Park Sang Hyuk, as well as People Power Party lawmakers Kim Eun Hye, Kim Jae Seop, Choi Bo Yoon, Lee Sung Kwon and Kim Sung Won.
Min recently told reporters that lawmakers expected a public hearing on the Digital Asset Framework Act at the end of September. South Korea currently regulates the sector through the Virtual Asset User Protection Act, which focuses mainly on user protection and unfair trading practices.
Stablecoin Rules Still Under Discussion
The second-stage framework is expected to cover issuance, disclosures and stablecoin regulation. Stablecoin issuer eligibility remains one of the key issues under discussion. The Bank of Korea has backed a bank-led structure for won-denominated stablecoins, citing possible effects on monetary policy, payments and financial stability.
South Korea has also used regulatory sandbox programs to test blockchain technology and digital assets in several areas. New exemptions have supported trials involving real-world use cases, including public spending. The FSC’s latest statement did not specify which types of digital currency public institutions would use or the scale of the initial rollout, but authorities plan to monitor how digital currency payments operate within public spending.
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