South Korea’s push to regulate stablecoins hit a roadblock this week after the Financial Services Commission (FSC) missed a deadline to deliver a draft bill — exposing deep disagreements among regulators and lawmakers over who should be allowed to issue the tokens. The FSC told local outlet Newsis it could not meet the ruling Democratic Party’s timetable and needs more time to coordinate its stance with other agencies. The delay comes as the party’s Digital Asset Task Force (TF) and the Bank of Korea (BOK) remain at odds over a key point: whether stablecoin issuance should be limited to a bank-led consortium. According to Yonhap Infomax, the BOK favors a model that would require a stablecoin issuer seeking local approval to be majority-owned (at least 51%) by a consortium of banks. The Democratic Party’s TF, however, has pushed back — arguing the special committee wants to preserve room for innovation rather than lock issuance into a bank-centered model. “The Bank of Korea is advocating for a bank-centered consortium, but what the special committee values most is innovation,” a TF lawmaker was quoted saying. The BOK warns that if a bank-consortium requirement is not written into law, regulators will need to set up a policy consultative body — including the Ministry of Strategy and Finance, the FSC and the central bank — to make unanimous decisions on approvals and major regulatory questions. TF members say they generally support a consultative mechanism and that the central bank has committed to cooperating on timing and approval processes. Still, coordination is required to ensure the BOK’s voice is reflected in any final framework. Timetable: Newsis reports the ruling party plans to produce a consolidated bill in January 2026, a timeline that could push the government’s own proposal into early next month at the latest. The Democratic Party will hold an advisory meeting with external TF members on Dec. 22 to finalize the legislation’s direction. Observers expect lawmakers and regulators to continue negotiating contentious points — notably the BOK-backed bank consortium rule — though the party has signaled it may pursue independent legislation if consensus proves elusive. Why it matters: how South Korea resolves the issuer question will shape which players — banks, fintechs, or crypto firms — can lead stablecoin issuance domestically, with implications for competition, innovation and the broader crypto ecosystem in one of Asia’s most active markets. Read more AI-generated news on: undefined/news
