TLDR
- South Korean lawmakers have set a December 10 deadline for the government to deliver a stablecoin bill draft.
- The Democratic Party of South Korea warned that they will push through legislation if the deadline is not met.
- Disagreements continue between the Bank of Korea and other regulators over the role of banks in stablecoin issuance.
- The Financial Services Commission has confirmed that discussions are ongoing to finalize the stablecoin regulatory framework.
- The stablecoin bill could be discussed in an extraordinary session of the National Assembly in January 2026 if delivered on time.
South Korean lawmakers have set a firm deadline for the government to deliver a draft bill on stablecoin regulation. The ruling party has urged financial regulators to submit the framework by December 10. The move comes as disagreements over the role of banks in stablecoin issuance continue to delay progress.
Lawmakers Demand Action on Stablecoin Regulation
The Democratic Party of South Korea has expressed frustration over delays in stablecoin regulation. Kang Joon-hyun, a lawmaker of the party, warned that if the government does not meet the deadline, they will push through legislation. He added that the bill could be discussed at the extraordinary session of the National Assembly in January 2026.
Kang emphasized the urgency of addressing the issue, stating, “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.” The deadline pressures financial regulators to finalize a stablecoin regulatory framework for South Korea.
The Bank of Korea (BOK) and other regulators have clashed over the extent of banks’ role in issuing stablecoins. The BOK has argued that banks should own at least 51% of any stablecoin issuer in South Korea. They believe banks are well-regulated and have experience handling anti-money laundering protocols.
However, financial regulators, including the Financial Services Commission (FSC), are seeking a more diverse ecosystem for stablecoin issuance. They want to avoid allowing banks too much control over the process. The FSC confirmed that discussions were ongoing to prepare the government bill as soon as possible.
No Final Decisions on Stablecoin Framework
The FSC has stated that no final decisions have been made regarding a potential consortium for issuing a KRW-denominated stablecoin. The agency clarified that no agreement has been reached on the ownership structure of stablecoin issuers. Reports earlier this year suggested South Korea might end the year without a stablecoin framework due to the ongoing disputes.
The FSC’s latest statement follows a meeting between the ruling party and government officials. Both parties agreed to expedite the process and deliver a government bill for stablecoin regulation before the December 10 deadline.
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