Government targets January 2026 consensus as debate intensifies over who can issue stablecoins
South Korea’s efforts to establish a clear stablecoin regulatory framework have hit a delay after the country’s top financial regulator missed a key legislative deadline. The setback highlights deep divisions between regulators, lawmakers, and the central bank, raising questions about how stablecoins will be governed in one of Asia’s most active digital asset markets
The Financial Services Commission (FSC) failed to submit a draft stablecoin bill by Dec. 10, a deadline set by the ruling party. Officials cited the need for additional coordination with relevant government agencies, signaling unresolved differences on core policy issues.
At the center of the debate is whether stablecoin issuance should be limited to bank-led consortiums. The central bank has argued that only consortiums where banks hold a majority stake of at least 51% should be permitted to issue stablecoins, citing financial stability concerns.
Ruling party lawmakers have pushed back strongly, stressing that overly restrictive rules could stifle innovation. They argue that limiting issuance to banks could prevent non-bank financial firms and technology companies from participating in the stablecoin market.
Instead, policymakers are considering a policy consultative body involving fiscal authorities, regulators, and the central bank to oversee approvals and regulation, ensuring shared oversight without blocking market development.
A consolidated stablecoin bill is now expected by January 2026, with further discussions scheduled later this month. Lawmakers have indicated they may pursue independent legislation if consensus with regulators cannot be reached, keeping stablecoin regulation firmly in focus in the months ahead.
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