Korea’s top crypto exchange calls offshore tokenized trading “painful” as stablecoin law stalls
- An FSS official told a Seoul forum that stablecoin payments in South Korea will have to fall under the existing Electronic Financial Transactions Act.
- The recommendation was made because the Digital Asset Basic Act still has not passed.
- Dunamu’s vice chairman complained that tokenized Samsung Electronics and SK Hynix shares are trading only on offshore platforms, as a growing market is leaking abroad.
The vice chairman of Dunamu, the operator of South Korea’s largest crypto exchange, Upbit, has expressed frustration with the pace of regulation in the country on the same day that the Financial Supervisory Service (FSS) proposed adapting its e-payment law to won stablecoins, as the specific legislation for issuers remains stalled.
South Korean stablecoins have to run under e-payment law
Speaking at a separate Seoul forum on stablecoin policy on the same day, the head of South Korea’s Financial Supervisory Service (FSS) electronic finance inspection bureau, Shim Eun-seop, said stablecoins used for payments in the country will have to adapt to the existing Electronic Financial Transactions Act.
The FSS official made the proposal because the Digital Asset Basic Act that was supposed to govern them has still not passed.
Tokenized trading volume is leaving Korea
In a rare public appearance at the D-CON policy conference, Dunamu co-founder Kim Hyung-nyeon noted that the exchange, along with other domestic platforms, are being held back from entering the tokenized equities trade by local regulations that have hit a wall.
That regulatory headwind has caused traders seeking exposure to those products to seek out offshore exchanges already offering tokenized versions of South Korea’s biggest stocks, including Hyundai Motor, Kakao, Naver, Samsung Electronics and SK Hynix.
South Korea is ready to tackle stalled regulation
The law that could help onshore tokenized stock trading activity continues to slip. The government’s draft of the Digital Asset Basic Act is expected later this month, and ruling-party lawmakers at both events pushed for a quick vote.
Political Affairs Committee chair Yoo Dong-su and the Democratic Party’s Rep. Min Byung-duk have both expressed the will to pass the draft once it arrives. Rep. Min Byung-duk committed to a January 18 deadline.
The Financial Services Commission (FSC) is writing its own rules to let tokenized stocks, bonds and funds trade in the country from February 4, 2027. The regulator public is accepting comments on that proposal until November 11.
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FAQs
Why do South Korean stablecoins face the Electronic Financial Transactions Act?
Because the Digital Asset Basic Act has not passed, FSS official Shim Eun-seop said stablecoins used as payment tools must sit under the existing electronic-payments law for fairness, user protection and settlement stability.
What did Dunamu say about tokenized Korean stocks?
Vice chairman Kim Hyung-nyeon said it was painful that Samsung Electronics and SK Hynix shares can be tokenized and traded only on overseas exchanges, adding that Dunamu is technically ready to offer such trading once Korean rules allow it.
When could tokenized securities trading start in South Korea?
The FSC's proposed rules would permit stocks, bonds and funds to trade in tokenized form from February 4, 2027, with the comment period closing on November 11, 2026.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Hannah Collymore
Hannah is a writer and editor with nearly a decade of blog writing and event reporting experience in the crypto space. At Cryptopolitan, Hannah contributes to the news page, reporting and analyzing the latest developments in DeFi, RWA, crypto regulation, AI and frontier tech industries. She graduated from Arcadia university with a degree in Business Administration.
