South Korea's Crypto Regulation Stalls: Stablecoin Issuance Debate Delays Key Law

The implementation of South Korea's pivotal Virtual Asset User Protection Act has hit a significant roadblock. The central point of contention delaying the enforcement is a debate over which entities will be legally permitted to issue stablecoins within the country's financial ecosystem. This regulatory uncertainty creates a holding pattern for the broader crypto market in South Korea, as market participants await clear guidelines on digital asset operations and stablecoin frameworks. The delay underscores the complex challenges regulators face in balancing innovation with financial stability and consumer protection in the rapidly evolving cryptocurrency sector.