South Korea’s top financial regulator missed a key deadline to deliver a draft stablecoin bill, as lawmakers and agencies continued to debate who should be allowed to issue the digital tokens.
South Korea’s Financial Services Commission (FSC) failed to submit a draft legislative proposal on stablecoin regulation by Wednesday as required by the country’s ruling Democratic Party of Korea.
“We were unable to submit a proposal within the requested timeframe,” the FSC said, quoted in a report by the local news agency Newsis, and adding that the authority needed more time to coordinate its position with relevant agencies.
A subsequent report by Yonhap Infomax indicated that the Democratic Party’s Digital Asset Task Force (TF) opposes the Bank of Korea’s (BOK) position that stablecoin issuance should be restricted to a consortium of banks holding at least 51% in a stablecoin issuer seeking local regulatory approval.
BOK’s requirement would hinder innovation, ruling party says
“The Bank of Korea is advocating for a bank-centered consortium, but what the special committee values most is innovation,” a lawmaker at the TF reportedly said, underscoring the role of laws that can foster innovation.
The Bank of Korea argued that if the bank consortium regulation were not explicitly implemented, it would be necessary to establish a policy consultative body, including the Ministry of Strategy and Finance, the FSC and the central bank. This authority would be expected to make unanimous decisions on issues such as stablecoin approval and regulation.
“We have a similar stance on the policy consultative body,” a TF member reportedly said, adding that there would be requirements on the timing of issuance approvals and that the central bank has committed to collaborating on these issues.
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“They seem to want the Bank of Korea’s voice to be reflected in the approval and regulation of stablecoins, so we need to coordinate,” the lawmaker added.
Draft stablecoin bill expected in early January
According to Newsis, the ruling party is expected to propose a consolidated bill in January 2026, which will likely push the government’s proposal to be released early next month at the latest.
In line with this schedule, South Korea’s ruling party reportedly plans to discuss the final direction of the legislation at an advisory meeting with external members of the task force on Dec. 22.
Lawmakers and regulators are expected to resolve issues, including the BOK-backed bank consortium requirement. Still, the Democratic Party has reportedly taken a hardline stance and may pursue independent legislation.