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Tim Alper

Author

Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked…

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August 25, 2025

Crypto advocates, IT experts, and media outlets are concerned that lawmakers’ deliberations on South Korea’s stablecoin legislation have “slowed to a standstill.”

The South Korean newspaper Busan Ilbo reported that all four stablecoin-related draft laws submitted to the National Assembly in recent months are currently stuck in the committee stage.

S Korea’s Stablecoin Legislation: Stuck in Committee

The bills’ delay, the newspaper wrote, is due to the fact that regulators and lawmakers cannot agree on key terms. Busan Ilbo wrote:

“Discussions on institutionalizing stablecoins in South Korea are stuck at a standstill. This stems from persistent disagreements between the National Assembly, the government, and the Bank of Korea (BOK).”

The outlet noted that the parties cannot agree on the question of whether they should let fintech and IT firms issue coins.

More conservative voices at the BOK and in the government want to restrict issuance to domestic commercial banks.

The question of whether or not to let fintech firms issue KRW-pegged coins is extremely sensitive in South Korea.

The country’s business space is dominated by large conglomerates known as chaebol. All of these firms have advanced finance and tech subsidiaries.

In recent years, internet giants such as Naver and Kakao have also moved into the space. The BOK and others fear that letting firms issue KRW-pegged coins will lead to the rise of big tech-controlled “private currencies.”

Historically, chaebol have wielded enormous political and financial influence in South Korea. The BOK is concerned that surrendering its monopoly on currency issuance to these firms (or new tech giants like Naver) will erode its power.

Conversely, the BOK exercises considerable regulatory powers over the commercial banking space. As such, it seems ready to dig its heels in on the matter.

Equity Requirements

The four bills all feature varying requirements for stablecoin issuers. The most progressive of the quartet proposes ensuring issuers have a minimum of 500 million won ($360,026) in equity capital.

This bill would essentially open the door to startups that wish to start issuing KRW-pegged stablecoins.

But the most conservative of the bills states that only firms with a minimum of 5 billion won ($3.6 million) in equity capital can enter the market.

Busan Ilbo wrote that the review process has been divided between two of the National Assembly’s committees, namely the Political Affairs Committee and the Strategy and Finance Committee.

This split is “hindering progress,” the outlet remarked. A senior official at a South Korean blockchain industry firm, speaking to Cryptonews.com on condition of anonymity, said:

“This delay is very frustrating. The government should make up its mind quickly, either way. Our rivals in other countries aren’t being left in limbo like us.”

Playing Catchup with Washington

South Korean critics have pointed to progress on stablecoins in Germany, China, and Japan, as well as the US.

The Japanese Financial Services Agency is reportedly set to authorize the Tokyo-based fintech company JYPC’s bid to issue the nation’s first yen-pegged stablecoin.

Experts in Seoul think that Berlin, Tokyo, and Beijing are all acting in response to events in Washington; keen to avoid a “unipolar” drift toward the US dollar.

US President Donald Trump signed the GENIUS Act into law in July this year. The act sets out a range of regulatory requirements for would-be stablecoin issuers.

Last week, the President of the USD Coin (USDC) issuer Circle Heath Tarbert held a stablecoin-themed meeting with the BOK Governor Rhee Chang-yong.

Tarbert also met with some of South Korea’s top bankers. The Circle chief spoke to top executives from financial behemoths like Kookmin, Woori, and Shinhan.

The following is a guest post from Konstantin Vasilenko, Co-Founder of Paybis.

The cryptocurrency industry has come a long way in the past decade, but let’s face it – buying crypto for the first time can feel like trying to solve a Rubik’s Cube blindfolded.

Despite all the advancements, first-time buyers often face a maze of confusing steps, technical jargon, and frustrating delays. This both discourages potential crypto enthusiasts and results in lost revenue for businesses. Let’s dive into what the ideal buying process should look like and why simplifying it is critical for adoption.

The Challenges of Buying Crypto: Kamal’s Journey

For many first-time crypto buyers, the excitement of joining the world of digital assets often turns into frustration. Let’s consider Kamal, a 25-year-old from Indonesia who’s been hearing about memecoins like Dogecoin and Shiba Inu on TikTok and in chat groups.

Intrigued by their viral success and excited about the hype around them, he sets aside some money to make his first investment. Full of enthusiasm, he’s ready to buy his first token. But instead of a smooth experience, he’s met with challenges at every turn, hitting roadblock after roadblock.

The platform’s interface is cluttered and confusing. Kamal struggles to find where to begin. Once he figures out how to sign up, the next steps remain unclear. But Kamal still intends to purchase, so he selects $PEPE in the search box – and he gets lost in what to choose, with no idea how the offers are graded and what they contain.

Like many others in such a situation, Kamal chooses the first option – he is already disoriented, and he certainly doesn’t want to choose between other options without understanding the difference.

Weirdly enough, it appears that Kamal can’t just buy the coin with the assets he has. He must buy SOL first on another platform to have it in his wallet. But how could he have known about this mechanism? No clear steps, no guidelines.

And this is just the tip of the iceberg of all the hurdles caused by poor onboarding. The KYC process requires users to upload an ID and a selfie, making them wait for hours for approval, unsure if they’ve done everything correctly. On the payment step after the approval, the preferred method might be unavailable. Frustrated, people choose an alternative, only to encounter hidden fees and an unfriendly exchange rate. And by the time our hero is ready to confirm the transaction, he’s already lost confidence. Blockchain confirmation takes longer than expected, and his memecoins don’t appear in his wallet immediately.

This experience highlights the frustrating reality of buying crypto on many platforms today. The lack of transparency, slow processes, and limited options create an exhausting journey for users like Kamal, often leading them to abandon the process altogether.

This story is not unique. Reports reveal that 50% of fiat-to-crypto transactions fail, even after users complete the KYC process. Moreover, transaction abandonment during the purchase flow can reach as high as 90% due to the complexities involved.

The fragmented and cumbersome nature of such systems amplifies user frustration, turning an exciting venture into an ordeal. The barriers to entry are real, and they’re holding back crypto’s mass adoption. For users like Kamal, these barriers often lead to abandoning the process altogether, highlighting the need for simplified, transparent solutions to encourage first-time buyers.

What an Ideal Buying Process Should Look Like

The perfect buying process eliminates unnecessary friction while maintaining security and compliance. To start, onboarding should feel as simple as signing up for a social media account. Automated tools can streamline the verification process and ensure speed without sacrificing security. Users should be guided clearly through each step, removing the confusion often associated with uploading personal documents or completing KYC procedures.

Transparency is another critical factor. Hidden fees and unexpected charges alienate users. Instead, platforms must clearly display all costs upfront, ensuring users know exactly what they’ll pay before confirming a transaction. What is essential to retaining first-time buyers, if not such a level of trust?

An ideal UX should closely resemble Web2 processes like online shopping or digital banking. A familiar interface can help reduce the intimidation factor for newcomers, making the transition into crypto smoother and more accessible.

Finally, speed is non-negotiable. Transactions should be processed in real-time, with clear progress updates throughout the journey. Delays, whether during payment or blockchain confirmations, erode trust and discourage future use.

Creating a great user experience goes beyond attractive visuals or user interface best practices. It involves meeting the specific needs and expectations of users – particularly those who aren’t early adopters and prioritizes ease of use and practical solutions.

Making Crypto Accessible: A Vision for The Future

Kamal’s story mirrors that of millions worldwide. In 2025, interest in crypto is surging, fueled by the rise of the TON ecosystem and platforms like Telegram integrating blockchain features. Yet, the complexity of buying crypto remains a major barrier. Simplifying the process is the #1 priority for crypto projects that aim to onboard the next billion users.

After the first quarter of 2025, the goal is clear: make buying crypto as effortless as sending a text. With advances in technology, platforms can create experiences that match – or exceed – Web2 convenience. Transparent fees, localized payment methods, and intuitive interfaces will be the norm rather than the exception.

The future of crypto depends on accessibility. Only by addressing today’s pain points and prioritizing user experience can we transform curiosity into action and so turn millions of hesitant newcomers into confident crypto adopters.

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