South Korea Parliamentary Research Service Says Stablecoin Payments Need More Than Framework Law

Park Hyo-min, a legislative researcher at the National Assembly Research Service, said the relationship between a proposed Digital Asset Framework Act and existing financial laws must be overhauled together if stablecoins are to be used in real-world payment services.

Speaking at D-CON 2026 at Fairmont Ambassador Seoul in Yeouido on November 10, Park said stablecoins are not just vehicles for investment and trading but could also serve as means of payment and settlement. A framework law alone, he said, would not be enough to integrate them into the existing financial system.

He said policymakers first need to examine how the legislation would align with the Electronic Financial Transactions Act, which governs domestic payment and settlement services. If stablecoins are used more broadly for overseas remittances and payments, the Foreign Exchange Transactions Act should also be reviewed.

Park added that, separate from the registration regime for virtual asset transfer businesses, further review of the Foreign Exchange Transactions Act would be needed to cover cross-border payment and settlement. He said it was important to refine related laws so a range of services can function in practice.

He also said the roles of existing virtual asset regulations and the framework law should be clearly defined. That includes reviewing how anti-money laundering obligations under the Act on Reporting and Use of Certain Financial Transaction Information, as well as user protection and unfair trading provisions under the Virtual Asset User Protection Act, would connect to the new legal framework.

Park described the second phase of legislation now under discussion as important not only for adding new rules, but also for responding to market changes and reducing the institutional uncertainty businesses face when pursuing new ventures. Still, he said lawmakers should not try to solve every issue in a single round of legislation.

Areas where risks have already been identified should be subject to clear rules, he said. At the same time, sectors where markets are still taking shape should be governed by basic principles that ensure entry and innovation for new businesses.

Park said legislation cannot always wait until the market is fully mature. If large amounts of retail funds flow in or the failure of a specific operator threatens to spread across the broader market, measures are needed to protect users.

He also called for greater predictability for businesses alongside regulatory flexibility. It is important to create an environment in which operators can foresee what kinds of businesses they are allowed to run and under what standards. Mechanisms to continuously review and improve the system after legislation is enacted should also be used.

Finally, Park said legislation and industry development should be pursued in parallel. A comprehensive law alone would not guarantee industry growth. Continued support is also needed for businesses' market entry conditions, related infrastructure and links with the existing financial system.