The vice chairman of Dunamu, the operator of South Korea’s largest crypto exchange, Upbit, has expressed frustration with the pace of regulation in the country on the same day that the Financial Supervisory Service (FSS) proposed adapting its e-payment law to won stablecoins, as the specific legislation for issuers remains stalled.
South Korean stablecoins must operate under the e-payment law
Speaking at a separate Seoul forum on stablecoin policy the same day, Shim Eun-seop, head of the electronic finance inspection bureau at South Korea's Financial Supervisory Service (FSS), said stablecoins used for payments in the country will have to fit within the existing Electronic Financial Transactions Act.
The FSS official made the proposal because the Digital Asset Basic Act, which was meant to govern them, has yet to pass.
Tokenized trading volume is leaving Korea
In a rare public appearance at the D-CON policy conference, Dunamu co-founder Kim Hyung-nyeon said the exchange and other domestic platforms are being kept out of tokenized equities trading by local rules that have reached a dead end.
That regulatory bottleneck has pushed traders looking for exposure to these products toward offshore exchanges that already offer tokenized versions of South Korea's largest stocks, including Hyundai Motor, Kakao, Naver, Samsung Electronics and SK Hynix.
South Korea is moving to break the regulatory logjam
The legislation that could help bring tokenized stock trading onshore keeps getting delayed. The government's draft of the Digital Asset Basic Act is expected later this month, and ruling-party lawmakers at both events called for a swift vote.
Political Affairs Committee chair Yoo Dong-su and Democratic Party Rep. Min Byung-duk have both signaled willingness to pass the draft once it arrives. Rep. Min Byung-duk committed to a January 18 deadline.
The Financial Services Commission (FSC) is drafting its own rules to allow tokenized stocks, bonds and funds to trade in the country from February 4, 2027. The regulator is accepting public comments on that proposal until November 11.
Source: www.cryptopolitan.com. Adapted by NBTC.
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