South Korea's National Policy Committee has postponed debate on the second-phase crypto asset framework until after June's local elections, leaving the industry in regulatory limbo. The delay comes as lawmakers avoid contentious provisions around bank involvement and exchange ownership caps during a sensitive political period.

The legislative gridlock reflects deeper divisions between the presidential office and financial regulators over how strictly to govern stablecoin issuance and institutional participation. Market participants now face extended uncertainty about the future of Korea's crypto ecosystem, including potential impacts on the so-called "kimchi premium" pricing phenomenon.

Five financial bills advanced through committee review on March 31, but crypto-related proposals were conspicuously absent. Only a minor amendment addressing virtual asset user protections made progress, suggesting comprehensive reform remains stalled by political maneuvering.