South Korean lawmakers set a Dec. 10 deadline for a stablecoin regulation draft, warning they’ll legislate independently if regulators miss the deadline.
News
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 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 from the Democratic Party, said, “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.” If it is delivered in time, he expects the bill will be discussed at the extraordinary session of the National Assembly in January 2026.
The Financial Services Commission (FSC) later issued a saying “no decision had been finalized regarding the formation of a consortium for issuing a KRW-denominated stablecoin.” The regulator confirmed that stablecoin regulation was discussed on Monday during a ruling party–government consultation, and both sides agreed to prepare the government bill as quickly as possible.
Related:
No agreement yet on bank-led model
Despite earlier reports, “no concrete decision has been made on matters such as allowing a consortium in which banks hold 51% or more of equity,” the FSC said. The news that South Korea is likely to end the year without a framework for locally issued stablecoins, amid ongoing disputes over the role of banks in stablecoin issuance.
The Bank of Korea (BOK) and other financial regulators clashed over the extent of banks’ involvement in issuing Korean won-pegged stablecoins. The central bank expected banks to own at least 51% of any stablecoin issuer seeking regulatory approval in the country, while regulators want a more diverse ecosystem.
Related:
Why a majority bank ownership?
A BOK official said at the time that banks “are already under regulatory oversight and have extensive experience handling Anti-Money Laundering protocols,” making them a good option for a stablecoin issuer.
Sangmin Seo, the chair of the Kaia DLT Foundation, told Cointelegraph in late October that the central bank’s argument for banks leading a rollout “.” He argued that a better solution would be to establish clear rules for issuers instead. He 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 was discussed again during Monday’s meeting, with an official from Kang’s office saying that the ruling party was “looking for a point of contact, considering both the stability of the BOK’s monetary policy and the industrial innovation emphasized by the [FSC]”.
Magazine:
