Hashed & Solana Policy Research: Why a 'Temporary License' for Stablecoins Was Proposed

While the global market is changing rapidly, driven by stablecoins, there are growing concerns that South Korea could become a digital asset backwater due to a regulatory vacuum. In this climate, a domestic Web3 policy think tank and a global blockchain policy organization have joined forces to propose a pragmatic path forward. Here are the key takeaways on why this report is drawing so much attention as a potential win-win solution for regulators and the industry alike.

Warning of 'Digital Isolation' Amid Regulatory Gaps

On July 30, Hashed Open Research and the Solana Foundation’s policy arm released a joint report warning that Korea risks becoming a 'digital island' if it continues on its current path. Although the Virtual Asset User Protection Act has been enacted, specific regulations regarding stablecoins remain clearly undefined in the domestic market.

Many point out that waiting indefinitely for the next phase of legislation is risky, as the global market is moving too quickly. The longer the regulatory vacuum persists, the more Korea loses its opportunity to play a leading role in the global stablecoin ecosystem.

This is why the report has garnered so much attention: it goes beyond merely highlighting the regulatory vacuum and offers a concrete, actionable bridge that allows both authorities and the industry to thrive.

Safety by Banks, Innovation by Fintech? — An Exquisite Compromise

The most intriguing solution proposed by the report is a 'division of labor' model that addresses the regulators' concerns regarding safety while preserving space for technological innovation. It is analogous to a partnership where an established, large corporation acts as a major shareholder to provide a secure foundation, while an agile startup handles trendy service operations and technical development.

Specifically, the report proposes a dual structure where a bank—responsible for the trust of the financial system—holds a majority stake in a joint venture to build the framework, while a tech-savvy fintech firm manages actual platform operations and user engagement.

The think tanks explain that under this structure, regulators can feel secure knowing that bank-level, rigorous asset management is in place, while users can enjoy convenient, blockchain-integrated Web3 services in their daily lives.

Granting 'Temporary Licenses' Before Perfect Legislation?

Another solution suggested is the 'temporary license' system. Given that the global market is moving too fast to wait for comprehensive legislation from the National Assembly, the proposal suggests that the Financial Services Commission could provide interim guidelines to navigate this transition period.

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

Financial authorities are naturally cautious as stability is their top priority. However, industry insiders warn that because legislation takes a long time, the lack of even such temporary measures could widen the gap with the global market. There is a growing call to prioritize seizing the moment over waiting for the perfect regulatory framework.

What to Watch Moving Forward?

With the industry having stepped forward with a pragmatic compromise, the ball is now in the court of the financial authorities. It remains to be seen whether they will move beyond their conservative stance to adopt flexible interim guidelines or choose to stick to their existing roadmap.