Stablecoin Bill Reaches Critical Juncture Amidst Lawmaker Pressure
South Korea’s long-delayed “Phase 2” digital asset legislation, centered on establishing a regulatory framework for stablecoins, has reached a critical turning point as ruling and opposition lawmakers intensify pressure on financial regulators to finalize the country’s first stablecoin bill.
The push comes amid months of stalled negotiations over who should be permitted to issue won-denominated stablecoins, a core point of contention between policymakers.
Negotiations Focus on Consortium Model for Stablecoin Issuance
On Monday, officials from the Democratic Party’s Political Affairs Committee and the Financial Services Commission (FSC) held a closed-door meeting at the National Assembly to narrow differences on the Digital Asset Basic Act.
According to Democratic Party lawmaker Kang Joon-hyun, discussions focused heavily on a “consortium model” in which banks and technology companies jointly issue stablecoins. The model is viewed by some legislators as a compromise that protects monetary stability while allowing innovation from the fintech sector.
Kang said the parties examined various structures, including proposals requiring banks to hold at least a 50% stake in issuing consortiums. However, he noted that no formal agreement had been reached.
The FSC also clarified that no decisions had been made regarding allowing bank-majority consortiums, emphasizing that Monday’s talks were preliminary.
Divergent Views on Stablecoin Regulation
The disagreement reflects broader tensions between South Korea’s key financial institutions. The Bank of Korea has insisted that banks must play a central role in issuing stablecoins, arguing they carry systemic risks and could affect currency sovereignty.
Meanwhile, the FSC and some lawmakers advocate a more open regime to encourage private-sector innovation.
Legislative Deadlines and Industry Concerns
Kang issued a firm deadline, urging regulators to submit the government’s draft bill by December 10. If missed, he warned that lawmakers would advance legislation independently.
Both ruling and opposition parties aim to introduce the bill during the current parliamentary session and seek passage during an extraordinary session in January 2026.
The crypto industry has welcomed signs of movement. With the U.S., EU, and Japan already implementing stablecoin rules, and global markets dominated by dollar-based tokens like USDT, there is growing concern that prolonged delays could undermine South Korea’s competitiveness in the digital asset sector.