South Korean lawmakers have issued a strict December 10 deadline for financial regulators to present a draft law for stablecoins, threatening to bypass them if the deadline is missed, as the nation races to define the future of digital currencies amidst internal debates over bank control.
Legislators from the ruling party are driving this push for swift regulatory action. The goal is for South Korea to establish itself as a global leader in stablecoin regulation.
This urgency comes as the stablecoin market has grown explosively, surpassing an estimated $300 billion in market capitalization this year. The global competition for clear regulatory frameworks is intensifying.
A central point of contention in South Korea is the role of traditional banks in issuing new stablecoins pegged to the Korean won.
Democratic Party legislator Kang Joon-hyun explicitly warned, “If the government’s bill does not arrive within this deadline, we will take the initiative through legislation driven by the secretary of the political affairs committee.”
The Financial Services Commission (FSC) confirmed ongoing consultations between the ruling party and the government to expedite the regulatory text. However, the FSC emphasized that “no finalized decision has been made regarding the formation of a consortium to issue a Korean won-denominated stablecoin.”
Disputes largely center on bank equity participation in stablecoin issuers. The Bank of Korea (BOK) advocates for traditional financial entities to hold at least 51% ownership, citing their expertise in regulatory supervision and anti-money laundering measures.
In contrast, other regulators favor a more diverse ecosystem to foster innovation within the digital asset space.
Industry figures have also weighed in on the debate. Sangmin Seo, President of the Kaia DLT Foundation, questioned the BOK’s stance in October. He suggested it “seems to lack a logical basis,” arguing that clear rules for issuers would be more valuable than restricting bank control.
“It would be even more valuable if the Bank of Korea could provide guides on how to mitigate these risks and what qualifications are required for an issuer to be considered reliable,” Seo added.
South Korea’s push reflects a global trend. Other jurisdictions have also moved to regulate stablecoins, which serve as a primary bridge between the cryptocurrency world and the traditional economy.
The European Union’s Markets in Crypto-Assets (MiCA) regulation already imposes strict requirements for stablecoin issuers. The United States advanced with the signing of the GENIUS Act in July. Japan has strengthened its guidelines under the Financial Services Agency, and Hong Kong has launched a regulatory sandbox for stablecoins pegged to its local dollar.
If South Korea’s draft bill is presented on time, it is expected to be debated in an extraordinary session of the National Assembly in January 2026. The outcome of the December 10 deadline will likely shape the future of digital currencies in Asia’s third-largest economy.