Hashed x Solana Policy Research Institute — Why They Proposed a 'Temporary License' for Stablecoins

The global market is rapidly transforming with stablecoins at its center, but in Korea, there are growing concerns that a regulatory void could leave the country as an isolated island in the digital asset space. In this environment, a domestic Web3 policy institute and a global blockchain policy organization have joined forces to propose a realistic breakthrough, drawing significant attention. Here are the key takeaways on why this report is sparking conversation as an alternative that could allow both regulators and the industry to thrive.

Warning of 'Digital Isolation' Amid Regulatory Void

On July 30, the joint report released by Hashed Open Research and the Solana Policy Research Institute highlights the concern that 'if things continue this way, Korea will become an isolated digital island.' Although a Virtual Asset Act has been implemented in Korea, specific regulations for stablecoins remain undefined.

Many point out that waiting for the next phase of legislation is not an option, given the breakneck pace of global market shifts. The longer the regulatory void persists, the more likely it is that domestic companies will lose their opportunity to take the lead in the global stablecoin ecosystem.

This is precisely why the report is garnering attention. It goes beyond simply raising concerns about regulatory gaps and proposes a concrete pathway for regulators and the industry to coexist.

Safety from Banks, Innovation from Fintech? — A Clever Compromise

The most intriguing solution presented in the report is a 'division of labor' model that mitigates the regulatory concern for safety while enabling technological innovation. It is similar to a partnership where a stable, large-scale firm acts as a majority shareholder to provide a safe perimeter, while an agile and trendy startup handles actual service operations and development.

Specifically, it proposes a bifurcated structure: banks, which hold the trust of the financial system, would secure a majority stake in a joint venture to build the foundation, while tech-savvy fintech firms would handle actual platform operation and user management.

The institutes explain that under such a structure, regulators could be assured of bank-level strict asset management, while users would enjoy convenient Web3 services integrated with blockchain technology in their daily lives.

How About a 'Temporary License' Before a Perfect Law?

Another breakthrough proposed in the report is a 'temporary license' system. The logic is that since the market is moving too fast to wait for comprehensive legislation from the National Assembly, the Financial Services Commission should provide transitional guidelines.

In simple terms, it's like a 'learner's permit' that allows for practice on the road before the official license is issued. The idea is to open a path for companies to test stablecoin-related businesses within a limited scope, under the safety umbrella of regulatory oversight.

Of course, for financial authorities, stability is the top priority, making them naturally cautious. However, the industry is concerned that because legislation takes a long time, the absence of even temporary measures could widen the gap with the global market. There is a growing consensus that capturing the right timing is more important than waiting for a perfect regulatory framework.

Points to Watch Moving Forward

With the industry having stepped forward first with a realistic compromise, the ball is now in the court of the financial authorities. It remains to be seen whether the authorities will break from their conservative stance to adopt flexible temporary guidelines or stick to their existing roadmap.