KIMCHIЦена KIMCHI

The National Policy Committee of Korea has delayed the debate on the "second-phase" crypto framework until after the June local elections, creating uncertainty in the industry. The proposed Digital Asset Basic Act was excluded from the legislative agenda, despite its importance in regulating stablecoins and exchange ownership. Two major conflicts are stalling progress: first, a dispute between the Bank of Korea and the Financial Services Commission (FSC) over whether banks must hold a 51% stake in won-denominated stablecoin issuers. The FSC opposes this, arguing it would exclude tech firms and exchanges. Second, there is disagreement over equity caps for crypto exchanges, with proposals to limit major shareholders to 20%, affecting giants like Upbit and Bithumb. The delay leaves KRW stablecoin issuers in a gray zone and increases operational costs. Post-election, a bank-heavy stablecoin framework and tighter rules could favor large incumbents, reshaping market liquidity and altcoin listings. Weakening these rules could signal greater openness for crypto in Korea.