South Korean lawmakers are increasing pressure on financial regulators to deliver a draft bill on stablecoin oversight before the newly imposed December 10 deadline. The ruling party’s push reflects growing frustration over stalled negotiations, particularly disagreements about how much control banks should have in the issuance and governance of Korean won–based digital assets.
Local outlet Maeil Business Newspaper reported that the ruling party issued what it described as a final warning to regulators, urging them to submit the draft without further delay. Democratic Party lawmaker Kang Joon-hyun stated that if financial authorities fail to meet the deadline, the National Assembly’s political affairs committee will introduce its own version of the legislation to move the process forward. He explained that if the bill is submitted on time, lawmakers hope to formally debate it during the National Assembly’s extraordinary session scheduled for January 2026.
Shortly after the lawmakers’ warning, the Financial Services Commission (FSC) released a clarifying statement, noting that discussions on stablecoin policy had taken place during a meeting between the ruling party and government officials earlier in the day. The FSC emphasised that no final decision has been made regarding the creation of a consortium to issue a stablecoin linked to the Korean won and insisted that the regulatory draft is still under development. Both sides reportedly agreed to accelerate the drafting process.
The main issue causing the delay is whether banks should be required to hold a majority stake—at least 51 per cent—in any stablecoin-issuing entity. Earlier reports suggested regulators were leaning toward such a structure, but the FSC stressed that nothing has been confirmed. Tensions over this point have persisted for months, with the Bank of Korea (BOK) favouring a bank-led approach, while other regulators argue that the industry should remain open to a broader range of participants.
The BOK has previously argued that banks are well-suited for this role because they already operate under strict supervision and have extensive experience implementing Anti-Money Laundering controls. However, several industry voices disagree. Kaia DLT Foundation chair Sangmin Seo said in October that the central bank’s reasoning lacks a strong basis and that establishing clear qualification standards and risk management rules for issuers would be more effective than mandating majority bank ownership. He also called for more detailed guidance from the BOK on how potential risks could be addressed.
According to an official from Kang’s office, the ruling party is still attempting to strike a balance between protecting monetary policy stability—an issue raised by the BOK—and encouraging innovation within the digital asset ecosystem, a priority highlighted by the FSC. Whether regulators will meet the December 10 deadline remains uncertain, but pressure from lawmakers suggests that the country is determined to avoid further delays in establishing a stablecoin regulatory framework.
