South Korean lawmakers are actively urging financial regulators to present a draft stablecoin bill by a set deadline later this month, as ongoing disagreements concerning the role of banks continue to impede progress. The nation's ruling party issued a last-minute notification to financial regulators, mandating the submission of a stablecoin regulatory framework draft by December 10.
Kang Joon-hyun, a lawmaker affiliated with the Democratic Party, articulated that should the government bill fail to materialize within this specified timeframe, legislators will proceed with advancing legislation through the secretary of the political affairs committee. If submitted on time, he anticipates the bill will be a subject of discussion during the extraordinary session of the National Assembly scheduled for January 2026.
Regulatory Statements and Ongoing Discussions
Subsequently, the Financial Services Commission (FSC) released a statement clarifying that no definitive decisions have been reached regarding the establishment of a consortium for the issuance of a Korean won-denominated stablecoin. The regulator confirmed that stablecoin regulation was a topic of discussion on Monday during a consultation between the ruling party and the government, with both parties concurring on the importance of preparing the government bill with utmost urgency.
Contrary to earlier reports, the FSC indicated that no concrete decisions have been finalized on critical matters, such as permitting a consortium where banks would hold a majority equity stake of 51% or more. This news emerges in the wake of reports from late November suggesting that South Korea was likely to conclude the year without a defined framework for locally issued stablecoins.
Disagreements on Bank Involvement in Stablecoin Issuance
The Bank of Korea (BOK) and other financial regulators have engaged in discussions regarding the extent of banks' participation in the issuance of Korean won-pegged stablecoins. The central bank's stance favored banks owning a minimum of 51% of any stablecoin issuer seeking regulatory approval within the country, whereas regulators expressed a preference for fostering a more diversified ecosystem.
An official from the BOK highlighted that banks are already subject to regulatory oversight and possess considerable experience in managing Anti-Money Laundering protocols, positioning them as a suitable choice for stablecoin issuers. This argument underscores the existing compliance infrastructure of banks as a rationale for requiring majority ownership.
Alternative Perspectives on Stablecoin Regulation
Sangmin Seo, the chair of the Kaia DLT Foundation, commented in late October that the central bank's rationale for having banks lead the rollout appears to lack a logical basis. He proposed that a more effective approach would involve establishing clear guidelines for issuers rather than mandating bank ownership.
Seo further suggested that it would be highly beneficial if the BOK could provide directives on risk mitigation strategies and the qualifications necessary for an issuer to be recognized as trustworthy. This point was revisited during Monday's meeting, with an official from Kang's office indicating that the ruling party was actively seeking a point of contact to address these concerns.
The official elaborated that lawmakers are carefully considering both the stability of the BOK's monetary policy and the promotion of industrial innovation as emphasized by the FSC. The December 10 deadline signifies a pivotal moment in the development of South Korea's cryptocurrency regulatory framework.