South Korea Sets November Target for Second-Stage Crypto Legislation

Seo Na-yoon, head of the FSC’s virtual asset division, addressed concerns during a Sept. 22 seminar in Seoul, clarifying that recent personnel changes within the commission will not disrupt the timeline. While critics have questioned the pace of the second-stage framework—which aims to build upon the existing Virtual Asset User Protection Act—regulators maintain that the legislative direction is already set. The government intends to integrate its own draft with the 10 separate bills currently pending in the National Assembly.

Stablecoin regulation serves as the pivot point for these negotiations. The Bank of Korea continues to advocate for a bank-led model to preserve monetary policy and financial stability, a stance that remains central to the ongoing talks. Lawmakers are under mounting pressure to finalize these rules by 2026, especially as global competition intensifies. Representative Min Byung-duk noted that the emergence of U.S.-regulated stablecoins, spurred by the GENIUS Act, necessitates a proactive domestic framework to ensure local companies can compete with incoming international products.