Lawmakers push for government proposal by December 10 to accelerate local crypto legislation
South Korea’s ruling Democratic Party has issued an ultimatum to financial authorities to submit a proposal for stablecoin regulation by December 10, signaling urgency in establishing a domestic framework. The party intends to pass the bill into law during the current National Assembly session, with a target for January enactment.
Ultimatum to Authorities
Lawmakers told the Financial Services Commission (FSC) that failure to submit the proposal will prompt the party to advance a legislator-initiated bill. Kang Jun-hyeon, a Democratic Party lawmaker and secretary of the National Assembly’s Financial Services Committee, said the party is prepared to drive the legislation through at the committee level if necessary.
Kang local policy analyst commented, “This step shows the ruling party is serious about ensuring South Korea has regulatory clarity for stablecoins. Delays could hinder the country’s efforts to create a domestic digital currency ecosystem.”
Bank-Led Consortium Model Under Discussion
Officials discussed a potential model where the Bank of Korea, the FSC, and commercial banks would jointly issue stablecoins through a consortium. Proposals include requiring banks to hold a majority stake in the entity, although no formal agreement has been reached.
The push aligns with President Lee Jae Myung’s policy to develop a Korean won-backed stablecoin as a tool to strengthen monetary sovereignty amid the dominance of U.S. dollar stablecoins. Previous legislative efforts have stalled, making this consortium-based approach the most concrete proposal to date.
several lawmakers note that limiting issuance to regulated banks could provide a controlled framework for the market while balancing innovation and financial stability, but the final structure remains subject to negotiation.
Disclaimer
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