South Korea’s Financial Services Commission has set a November target for a National Assembly subcommittee review of the Digital Asset Framework Act, publicly rejecting claims that work on the country’s second stage crypto legislation has stalled. The announcement, made at a National Assembly seminar in Seoul on Sept. 22, pushes back against mounting criticism over the pace of a bill that lawmakers hope to complete before the end of 2026.
FSC rejects delay accusations
Speaking at the seminar, Seo Na-yoon, head of the FSC’s virtual asset division, said the regulator and lawmakers are moving in the same direction on legislation covering digital asset issuance and distribution, including stablecoins. While differences remain over when exactly the government will submit its own draft, 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 critics who have questioned the regulator’s commitment. “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 added that the regulator wants the legislation passed quickly and expects discussions to proceed using bills that lawmakers have already introduced, working alongside the government’s own proposal rather than waiting for it. She also dismissed concerns about recent personnel changes inside the FSC, insisting that a change in the responsible official cannot be allowed to derail the schedule.
Ten bills already on the table
Lawmakers are not starting from scratch. Ten digital asset and stablecoin bills are currently pending in the National Assembly, giving legislators existing proposals to work from before the government finalizes its consolidated version. The FSC has previously told the Assembly that it plans to work with the ruling Democratic Party on a single consolidated bill incorporating the work already done around those ten proposals.
The legislative effort has drawn participants from both major parties. Representative Min Byung-duk introduced one of the first proposals in June 2025, and Democratic Party lawmakers including Ahn Do-geol, Kim Hyun-jung, Lee Kang-il and Park Sang-huk have since submitted their own versions. On the opposition side, 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 is expected at the end of September.
Stablecoins remain the core issue
South Korea currently regulates the sector through the Virtual Asset User Protection Act, its first stage legislation focused primarily on user protection and cracking down on unfair trading practices. The second stage framework is expected to go much further, addressing token issuance, disclosure requirements and, most contentiously, stablecoin regulation.
Stablecoin issuer eligibility has been one of the most debated points. The Bank of Korea has consistently supported a bank-led structure for won-denominated stablecoins, citing potential effects on monetary policy, payments and financial stability. In July, the central bank reaffirmed that banks should initially take a leading role in issuing won-backed stablecoins through consortiums.
The government has placed digital asset legislation firmly 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 reiterated in its presidential business briefing this year that it plans to complete second stage stablecoin-related legislation within 2026.
U.S. pressure looms over the timetable
American developments featured prominently during the Sept. 22 seminar. Representative Min argued that the U.S. CLARITY Act and GENIUS Act have created a window that South Korea cannot afford to miss. The U.S. Senate recently failed to advance the CLARITY Act after a 50-49 cloture vote fell short of the 60 votes needed to begin debate, while the GENIUS Act established a federal framework for payment stablecoins.
Min focused particular attention on the GENIUS Act’s Jan. 18, 2027 effective date, claiming that a wave of dollar-backed products is already being prepared across the U.S. market.
“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.”
His argument is straightforward: if South Korean companies and consumers are expected to wait for locally regulated products, the legal framework needs to be in place before foreign alternatives flood in. U.S. regulators have faced their own implementation delays, with the GENIUS Act having given federal agencies one year to complete rulemaking after its signing in July 2025.
Market context
The legislative update comes as the broader crypto market trades firmly in the green, with Bitcoin changing hands around 85,941 USD, Ethereum at 2,752 USD and Solana at 117.30 USD at the time of writing. South Korea remains one of the world’s most active retail crypto markets, and the outcome of the Digital Asset Framework Act will shape how exchanges, banks and issuers operate there for years to come.
With a public hearing expected before October and a subcommittee review penciled in for November, the coming weeks will show whether the FSC’s stated timetable holds, or whether the political friction that has surrounded the second stage legislation so far delays it into 2027.
seo saying the direction has already been set while no government draft has even been submitted. a november subcommittee review of whose text exactly
seo na-yoon saying the direction is already set while no government draft has been submitted is the whole story. a november review of whose text exactly
exactly, three drafts floating and zero submitted. the november date survives on press releases alone
a november review of whose text exactly is the question that ends every FSC press conference. three drafts and zero submitted says everything
Seo saying lawmakers bills can proceed in parallel with the government draft is the actually new part. if that holds, november subcommittee is plausible. if not its the same logjam with a press conference
november target for the phase 2 bill and seo na-yoon saying FSC is not dragging its feet, sure. phase 1 took how many years again
phase 1 took like 2 years of competing drafts, a november subcommittee slot is genuinely fast by assembly standards tbh
phase 1 passed mid 2024, a november subcommittee review is basically on schedule by assembly standards. the real delay is politicians fighting over whose draft gets submitted first
on schedule by assembly standards is a low bar lol but fair, phase 1 took what, 2 years of competing drafts. the real test is whether the government submits its own bill before that november window closes
whose draft moves first is the whole game. three competing texts floating and the november slot stays a polite fiction until one of them lands
@kimchi_wonk phase 1 passed mid 2024 and honestly for a bill covering issuance plus distribution, november subcommittee review is not catastrophic pacing
The stablecoin provisions are the part worth watching. Won-pegged stablecoins through banks changes the whole retail on-ramp situation here.
Won-pegged stablecoins through banks would finally give korean retail a proper on ramp. Right now everything goes through usdt on offshore exchanges and everyone pretends not to see it.
you dont hold an assembly seminar just to deny delay rumors unless the delay narrative was actually landing. the defensiveness is the tell
Seo saying the FSC is not dragging its feet while the review slides to november, that quote is doing a LOT of heavy lifting
the quote is pure PR but holding an assembly seminar to address the criticism beats the old FSC playbook of going silent for six months
to be fair korea pushed stage one through faster than anyone predicted. stage two stablecoin rules are where every fight was always going to happen
stage two is where the banks start fighting over won stablecoins though. the minute commercial banks can issue them you bet the fsc timeline finds new problems
the second commercial banks smell won stablecoin margins the lobbying gets brutal. expect mystery delays right after the november review
the bank lobbying over won stablecoins started before phase 1 even passed. expect mysterious new delays the second commercial issuers think fintech startups might beat them to it
watch the bank association statements the week before the subcommittee meets. last time a vague payment stability press release killed two bills quietly
won stablecoin rules decide if korea finally gets a domestic usdt competitor or keeps pretending offshore exchanges dont exist. november is the ballgame