South Korea has demanded that the drafting of a stablecoin law be expedited.
Date: 2025-12-03 Author: Henry Casey Categories: IN WORLD
In early December, representatives of the Democratic Party, the FSC, and the Bank of Korea met to discuss key elements of the future regulatory framework for stablecoins. Although the participants thoroughly reviewed the proposed regulatory mechanisms and operating principles for issuers, the discussion ended without reaching any agreement. This lack of concrete solutions prompted the ruling party to demand that financial regulators submit a revised draft no later than December 10.
According to Maeil Economic News, the main obstacle was determining the structure under which stablecoins pegged to the Korean won would be issued. Specifically, a consortium model involving the Bank of Korea, the Financial Services Commission, and commercial banks is being discussed. The banking sector is expected to receive a controlling stake of at least 50%. However, this very clause has sparked disagreement among some participants, as it limits the role of private fintech companies.
The FSC officially confirmed the discussions, but noted that a final decision has not yet been made. Against this backdrop, the ruling party emphasized the need to expedite the process. Secretary-General of the Political Affairs Committee Kang Joon-hyun stated that if the draft is not submitted by the deadline, he intends to push for its advancement through the relevant committees of the National Assembly.
The bill was initially expected to be introduced during the current parliamentary session, with its adoption possible as early as January 2026. However, disagreements between the FSC and the Bank of Korea are slowing down the process. The central bank insists that the issuance of won-denominated stablecoins should be carried out exclusively by regulated banking institutions. However, the FSC and several members of parliament are convinced that the participation of fintech companies is necessary to foster competition and innovation in the industry. The intensification of the legislative process is linked to a general shift in attitudes toward the crypto industry following the election of Lee Jae-moon, who supports the introduction of digital assets and the development of transparent market regulations. Amid these developments, some financial institutions have begun their own research into issuing stablecoins. Among them is KakaoBank, which, according to media reports, is already working on creating a digital asset pegged to the won.
The coming weeks will be crucial for the final draft of the bill. The further development of the stablecoin market in South Korea depends on how quickly regulators reach a consensus.
