South Korean lawmakers are pressing financial regulators to deliver a draft stablecoin bill by a deadline set for later this month, as disagreements over the role of banks continue to stall progress.
According to a Monday report by a local news outlet, Maeil Business Newspaper, South Korea’s ruling party sent a “last-minute notice” to financial regulators to submit a stablecoin regulatory framework draft by Dec. 10.
Kang Joon-hyun, a lawmaker of the Democratic Party, stated, “If the government bill does not come over within this deadline, we will take a drive through legislation by the secretary of the political affairs committee.” He anticipates that if the bill is delivered in time, it will be discussed at the extraordinary session of the National Assembly in January 2026.
The Financial Services Commission (FSC) subsequently issued a statement clarifying that “no decision has been finalized regarding the formation of a consortium for issuing a KRW-denominated stablecoin.” The regulator confirmed that stablecoin regulation was a topic of discussion during a ruling party-government consultation on Monday, and both parties agreed to expedite the preparation of the government bill.
No Agreement Yet on Bank-Led Model
Despite earlier reports, the FSC stated that “no concrete decision has been made on matters such as allowing a consortium in which banks hold 51% or more of equity.” This news follows reports from late November indicating that South Korea was likely to conclude the year without a framework for locally issued stablecoins, primarily due to ongoing disputes concerning the role of banks in stablecoin issuance.
The Bank of Korea (BOK) and other financial regulators have been in disagreement over the extent of banks’ involvement in issuing Korean won-pegged stablecoins. The central bank’s position was that banks should own at least 51% of any stablecoin issuer seeking regulatory approval in the country, whereas regulators advocated for a more diversified ecosystem.
Justification for Majority Bank Ownership
A BOK official explained at the time that banks “are already under regulatory oversight and have extensive experience handling anti-money laundering protocols,” which positions them as a suitable choice for a stablecoin issuer.
Sangmin Seo, the chair of the Kaia DLT Foundation, commented to Cointelegraph in late October that the central bank’s rationale for banks leading a rollout “seems to lack a logical foundation.” He proposed that establishing clear rules for issuers would be a more effective solution. Seo added:
“It would be even more valuable if the Bank of Korea could provide guidelines on how these risks can be mitigated and what qualifications are required for an issuer to be regarded as trustworthy.“
This point was reiterated during the recent meeting, with an official from Kang’s office indicating that the ruling party is “looking for a point of contact, considering both the stability of the BOK’s monetary policy and the industrial innovation emphasized by the [FSC].”