South Korea pushes regulators for stablecoin bill by December deadline
South Korean lawmakers are pressuring financial regulators to submit a draft stablecoin bill by Dec. 10, warning that they will take legislative action if the government fails to comply.
The ruling party issued what it called a “last-minute notice” demanding the framework. Lawmaker Kang Joon-hyun said that if regulators miss the deadline, the political affairs committee will advance legislation independently, reports Cointelegraph.
If the bill arrives on time, lawmakers expect discussions to begin during the National Assembly’s extraordinary session in January 2026. The Financial Services Commission later acknowledged the meeting but said no decisions had been finalized on key issues within the proposal. Both sides agreed to move quickly, but fundamental disagreements remain unresolved.
Regulators remain divided over bank dominance in stablecoin issuance
Despite earlier reports, the FSC clarified that no final agreement has been reached on whether banks should hold at least 51% equity in stablecoin issuers. This issue has become a major stumbling block, with the Bank of Korea pushing for majority bank ownership to ensure oversight and anti-money laundering compliance.
The FSC, however, wants a more flexible ecosystem that allows non-bank entities to participate in stablecoin issuance. Tension over this question has already slowed South Korea’s progress, making it unlikely the country will finalize a stablecoin regulatory regime before year’s end. Lawmakers acknowledged the conflict, saying they are searching for a compromise that balances financial stability with industry innovation. The dispute reflects broader global debates over whether stablecoins should be treated like bank products or open-market digital assets.
Debate centers on balancing monetary stability and digital innovation
The Bank of Korea argues that banks’ existing regulatory experience makes them best suited to maintain stability for a Korean won–pegged stablecoin. However, industry leaders disagree. Sangmin Seo of the Kaia DLT Foundation argues that mandating majority bank ownership lacks logical grounding and may hinder innovation.
Instead, he suggests establishing clear qualification rules for issuers, along with detailed guidance from the central bank on risk mitigation. Lawmakers echoed this need for balance in Monday’s meeting, noting that they must consider both monetary policy stability and technological competitiveness. Until those tensions are resolved, South Korea’s path toward a domestic stablecoin framework remains uncertain.
Recently we wrote that Ripple Labs has received approval from the Monetary Authority of Singapore to broaden its regulated payment activities under its Major Payment Institution license.
Latest Crypto News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
