South Korean lawmakers have delayed the submission of a key cryptocurrency bill as disagreements persist over how domestic stablecoins should be regulated.
The proposed Digital Asset Basic Act is now expected to be submitted sometime in 2026, according to local media reports citing government officials.
Officials said unresolved issues remain around stablecoin issuer oversight, which has slowed progress despite earlier political backing.
The bill was introduced in June by the ruling Democratic Party and aimed to allow the issuance of won-pegged stablecoins in South Korea.
Lawmakers initially framed the legislation as a way to strengthen the country’s crypto sector and improve its competitiveness in digital finance.
Under the draft proposal, stablecoin issuers would be required to place all reserve assets with authorised custodians such as domestic banks.
Regulators and industry groups remain divided on whether a separate body should be created to supervise stablecoin issuers before approval is granted.
The Financial Services Commission is reviewing the bill while weighing limits on the role of traditional financial institutions in stablecoin operations.
Officials are also considering a framework that would encourage participation from technology firms rather than concentrating control within banks.
Stablecoin oversight has become a sensitive issue as authorities balance innovation with consumer protection and financial stability risks.
The delayed bill is linked to campaign pledges made by South Korean President Lee Jae-myung ahead of his inauguration in June.
Lee previously promised to support the issuance of local stablecoins as part of a broader push to modernise the financial system.
He also publicly backed allowing the national pension fund to invest in digital assets under controlled conditions.
Support for exchange-traded funds tied to Bitcoin (CRYPTO:BTC) was another policy position highlighted during his campaign.
Market participants had expected the bill to provide clearer rules for domestic crypto projects and institutional involvement.
The delay has instead reinforced uncertainty around South Korea’s near-term regulatory direction for digital assets.
Separately, legal developments involving Terraform Labs have renewed attention on South Korea’s crypto enforcement stance.
Terraform Labs co-founder Do Kwon was recently sentenced to 15 years in prison in the United States over the collapse of the firm’s ecosystem.
Kwon may serve part of his sentence in South Korea, where he holds citizenship, according to filings from his legal team.
Local prosecutors could still pursue charges that carry a potential sentence of up to 40 years under South Korean law.
The high-profile case continues to influence public debate around stricter crypto regulation and accountability in the country.
At the time of reporting, Bitcoin price was $87,702.47.