Kim Seong-jin (transliteration), head of the Virtual Assets Division at Korea’s Financial Services Commission (FSC), confirmed at a National Assembly session that the government is advancing two tracks in parallel: Stage 2 legislation of the Digital Asset Basic Act, which includes stablecoin rules, and a plan for institutional investors to enter the virtual asset market. According to Tokenpost, the FSC’s policy is to complete digital asset legislation within the year; once institutional market access is finalized, the 2017 administrative-guidance ban on financial institutions holding shares in virtual asset companies could also be lifted this year. This signals a clear loosening of an administrative red line that has persisted since 2017.
Editorial Take: What Actually Changes for Korean U-Card Users
Let’s start with the conclusion—at this stage, this news does not change how you use the card in your hand. It’s “upstream” news: it affects whether stablecoins gain legal recognition under Korean law, whether a won-denominated stablecoin can be issued, and whether Korean institutions can legally hold exchange shares. It does not directly touch card application, top-up, or spending workflows.
That said, mid-term implications differ by scenario:
- Korean users on exchange-affiliated cards (Bybit Card, OKX Card): once the legislation lands, exchanges’ compliance standing in Korea will become clearer, which is a long-term positive—issuance stability and fiat on/off-ramps could both benefit. But no product-level changes are expected in the short term (7–30 days).
- Users on Asia-focused virtual cards (MPCard review, including the Asia Elite variant): MPCard operates on an Asia-Pacific BIN and Asia-Pacific account framework, which is not directly tied to Korea’s domestic stablecoin legislation—so this news is essentially neutral for it.
- Timeline expectations: within 7 days—no change; within 30 days—watch for whether the FSC publishes details of the Stage 2 draft bill; within 90 days—watch for whether any won-denominated stablecoin issuer emerges.
In other words, this is not an action window right now—it’s an observation window.
Historical Comparison: Against MiCAR and Japan’s Stablecoin Framework
Placing this within the Asia-Pacific and EU regulatory timeline makes the picture clearer.
- Compared with the EU’s MiCAR: the EU moved from legislation in 2023 to phased entry into force of stablecoin provisions (EMT/ART) in 2024, following a complete “legislate—transition period—enforcement” three-stage path. Korea is currently in the “legislative sprint” stage and has not yet entered a transition period. Similarity: both aim to give stablecoins legal status. Difference: MiCAR has already become enforceable rules within the EU compliance landscape, while Korea currently has only a policy stance plus a timeline commitment—the statutory text has not yet been drafted.
- Compared with Japan: after Japan’s 2023 amendment to the Payment Services Act, stablecoin issuance was restricted to banks, trust companies, and fund transfer service providers—a narrow but clearly defined path. If Korea follows a similar route, won-denominated stablecoin issuers would likely also be restricted to licensed financial institutions—which is exactly why the potential easing of the shareholding ban is worth watching: it may pave the way for licensed institutions to enter the stablecoin business.
One key distinction: MiCAR and Japan both set rules first, then addressed institutional entry; Korea is this time advancing legislation and institutional market access on parallel tracks, a more aggressive pace that also means the details remain far from settled.
Regulatory and Compliance Boundaries: Where Things Stand Now
For usdtcard.net readers, it’s worth being precise about the boundaries. Korea’s current situation is:
- Clearly prohibited: exchanges were previously barred from directly serving corporate clients, and financial institutions were barred from holding shares in virtual asset companies (the 2017 administrative guidance)—this is precisely the ban now being considered for relaxation.
- Legal gray zone: the legal classification of stablecoins and the legality of issuing a won-denominated stablecoin—these are exactly what Stage 2 legislation is meant to resolve, and remain unwritten for now.
- Impact on individual card use: Korean individuals holding and using overseas-issued USDT virtual cards are not the core focus of this legislation; personal KYC and tax reporting obligations are unaffected by this news.
It’s worth noting that usdtcard.net’s compliance section currently covers 8 jurisdictions including Japan, the EU, Hongkong, and Singapore, but does not yet have a standalone page for Korea. Korean users may refer to the Japan compliance guide, whose regulatory approach is somewhat closer, as a reference framework—but note that the two countries’ laws are not interchangeable; Korea’s official FSC bill should be treated as authoritative.
Key Milestones Worth Watching
- Publication of the Stage 2 draft bill—the FSC has committed to “completing this within the year”; the release of draft text is the first substantive signal, with particular attention to the scope of eligible stablecoin issuers.
- Whether the shareholding ban is formally lifted—if lifted, banks and securities firms may be able to enter the stablecoin and virtual asset business.
- Whether a won-denominated stablecoin issuer emerges—this is the direct evidence for whether Korea is heading toward a “licensed institutions only” model.
- The sequencing between institutional market access and legislation—whether the two tracks truly move “in parallel,” or one gets delayed, will determine the actual timeline.
Editorial Recommendations
- Korean users who already hold a Bybit Card / OKX Card: no action needed. This is upstream legislative news and does not trigger any need to switch cards or move funds.
- Korean users planning to apply for a new U-card: no need to delay or rush because of this news. The card application path is not directly tied to Korea’s stablecoin legislation, so you can decide normally based on your own needs—for card selection, see the comparison for Korea-based users.
- Users tracking stablecoin developments: focus on the “Stage 2 draft bill text” milestone rather than the headline itself—there is usually a gap of several months, and considerable uncertainty, between a policy stance and finalized statutory text.
In short: this is news worth marking on your calendar, but not worth acting on tonight.