A policy report released Wednesday recommends that South Korea introduce interim licensing guidance, grant greater flexibility to stablecoin issuers and phase in stablecoin regulation before finalizing its Digital Asset Basic Act. The document was prepared by Hashed Open Research and the Solana Policy Institute.

The recommendations stem from a June 23 symposium that brought together lawmakers, legal specialists and industry representatives. The Digital Asset Basic Act is intended to create the country’s first comprehensive framework for digital assets. It would address stablecoin issuance, disclosure requirements and broader market rules.

Multiple legislative proposals remain unreconciled. Disagreements over stablecoin issuance have delayed progress on the measure.

Democratic Party lawmaker Ahn Dogeol indicated that policymakers are examining a possible compromise. Under the approach, banks would keep majority ownership while fintech firms and other non-bank entities handle day-to-day operations.

Kim Hyobong, a partner at Bae, Kim & Lee, called for clearer rules on the crypto activities permitted for financial institutions. He also pressed for resolution of licensing uncertainty surrounding stablecoin payments and the establishment of standards for foreign-issued stablecoins.

Kim further recommended that South Korea adopt a phased approach similar to the European Union’s Markets in Crypto-Assets Regulation. Stablecoin issuance rules, he said, should be put in place ahead of the full Digital Asset Basic Act.