South Korean lawmakers are urgent monetary regulators to ship a draft stablecoin invoice by a deadline set for later this month, as disagreements over the position of banks proceed to stall progress.
In line with a Monday report by an area information outlet, Maeil Enterprise Newspaper, South Korea’s ruling celebration despatched a “last-minute discover” to monetary regulators to submit a stablecoin regulatory framework draft by Dec. 10.
Kang Joon-hyun, a lawmaker from the Democratic Occasion, stated, “If the federal government invoice doesn’t come over inside this deadline, we’ll take a drive via laws by the secretary of the political affairs committee.” Whether it is delivered in time, he expects the invoice can be mentioned on the extraordinary session of the Nationwide Meeting in January 2026.
The Monetary Companies Fee (FSC) later issued a statement saying “no determination had been finalized relating to the formation of a consortium for issuing a KRW-denominated stablecoin.” The regulator confirmed that stablecoin regulation was mentioned on Monday throughout a ruling celebration–authorities session, and either side agreed to organize the federal government invoice as shortly as attainable.
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No settlement but on bank-led mannequin
Regardless of earlier stories, “no concrete determination has been made on issues akin to permitting a consortium through which banks maintain 51% or extra of fairness,” the FSC stated. The information follows late November reports that South Korea is more likely to finish the yr with out a framework for regionally issued stablecoins, amid ongoing disputes over the position of banks in stablecoin issuance.
The Financial institution of Korea (BOK) and different monetary regulators clashed over the extent of banks’ involvement in issuing Korean won-pegged stablecoins. The central financial institution anticipated banks to personal no less than 51% of any stablecoin issuer looking for regulatory approval within the nation, whereas regulators need a extra numerous ecosystem.
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Why a majority financial institution possession?
A BOK official stated on the time that banks “are already underneath regulatory oversight and have intensive expertise dealing with Anti-Cash Laundering protocols,” making them a superb choice for a stablecoin issuer.
Sangmin Web optimization, the chair of the Kaia DLT Basis, advised Cointelegraph in late October that the central financial institution’s argument for banks main a rollout “seems to lack a logical foundation.” He argued that a greater resolution can be to ascertain clear guidelines for issuers as a substitute. He added:
“It could be much more worthwhile if the Financial institution of Korea might present pointers on how these dangers could be mitigated and what {qualifications} are required for an issuer to be considered reliable.“
This was mentioned once more throughout Monday’s assembly, with an official from Kang’s workplace saying that the ruling celebration was “on the lookout for some extent of contact, contemplating each the soundness of the BOK’s financial coverage and the economic innovation emphasised by the [FSC]”.
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