South Korea, the largest fiat-to-crypto market in the world, is moving closer to a unified stablecoin framework. On July 29, 2026, the Financial Services Commission (FSC) said it is preparing a government backed Digital Asset Basic Act that would bring 10 separate crypto and stablecoin bills under one framework.
What the Consolidation Bill Covers
The South Korean FSC plans to prepare the unified Digital Asset Basic Act after consultations between the government and ruling party. The bill is expected to cover three key areas, including the digital asset industry, the market, and users.
For the industry, the bill could define digital asset businesses, set conduct rules and create a legal framework for stablecoin issuance and distribution.
For the market, the FSC wants clearer exchange entry requirements and disclosure rules covering digital asset issuance and distribution.
User protection will also be a major part of the framework. The proposal is expected to strengthen internal controls and IT stability at levels closer to those required of financial institutions.
The FSC said it wants to build a digital asset ecosystem where “innovation and stability are in balance.”
Why Is This Happening Now?
The move comes as 10 separate crypto and stablecoin bills remain pending in South Korea’s National Assembly. The FSC wants to merge them into a single law, making it easier for lawmakers to review and vote on together.
The timing also follows South Korea’s overall plan to complete its second phase of digital asset legislation during the second half of 2026.
FSC Chairman Lee Won-geon also reported that the government would work on the institutionalization of stablecoin issuance and distribution while strengthening anti-money laundering rules.
Biggest Fight Could Be Over Who Can Issue Stablecoins
While the FSC wants to move quickly, but the major question is who gets to issue them.
One of the biggest is the proposed 51% rule, which could require banks to control at least 51% of a consortium issuing Korean won stablecoins. That could give banks significant control over the market while limiting participation.
There is also discussion around 15% to 20% ownership limits for virtual asset exchanges, potentially affecting major Korean platforms such as Dunamu, Bithumb, Coinone, Korbit and Streami.
The FSC has not yet made its government draft public, so the final details could still change.
FSC Wants Faster Stablecoin Legislation
The newly finalized Political Affairs Committee could now speed up discussions. The committee has 11 Democratic Party members, seven People Power Party members, one Innovation Party member and one Social Democratic Party member.
The committee has already agreed to hold its first and second subcommittee meetings twice a month, pointing to a faster review process.
The proposed bill could mark a major shift for South Korea’s crypto market if lawmakers reach an agreement.