South Korea’s FSC has missed the deadline for the stablecoin bill as a clash with the Bank of Korea over bank-led issuance and approval powers leaves the regulatory roadmap in limbo.
Summary
- The FSC failed to submit its stablecoin bill by the December 10 deadline, citing the need for more time to coordinate with other agencies.
- The BOK wants stablecoin issuers to have majority bank ownership with broad veto rights, while the FSC prefers a more flexible model aligned with MiCA and Japan.
- The postponed “Basic Digital Asset Act (Phase 2)” is expected to establish licensing, capital, disclosure and enforcement rules for the Korean stablecoin and digital asset markets.
South Korea’s Financial Services Commission (FSC) has missed the deadline to submit a proposed stablecoin law to the National Assembly, according to local reports, as regulators continue to debate issuance requirements for the digital tokens.
South Korea’s continued crypto journey
The National Assembly’s Political Affairs Committee had asked the FSC to submit the government’s proposal by the 10th, but the body informed the committee that meeting the deadline would be a challenge, an FSC official said.
“The FSC was unable to submit the government’s proposal within the requested timeframe,” the official said. “They simply stated that they needed more time to coordinate their positions with relevant agencies.”
According to local reports, South Korea’s ruling party plans to introduce a stablecoin law entitled the “Basic Digital Asset Act (Phase 2 Virtual Asset Act)” by January 2026.
The FSC stated that the government proposal would be submitted to the National Assembly and released publicly at the same time. A finance authority official noted that this dual approach is intended to protect the public’s right to information, allowing the bill to be submitted to lawmakers and interpreted externally at the same time.
The FSC is coordinating with the Bank of Korea (BOK) on the government’s stablecoin law, with the main point of contention focusing on who can issue the digital tokens, financial authorities said.
The BOK has argued that stablecoin issuers should be primarily managed by a banking consortium that owns at least 51% of the company’s shares, citing the need to ensure currency stability and protect the broader financial system, according to sources familiar with the matter.
The FSC has opposed the BOK’s bank-led issuance requirement, citing limited global precedent, the sources said. According to the European Union’s Markets in Crypto-Assets (MiCA) framework, 14 of the 15 stablecoin issuers are digital currency companies, and Japan’s first yen-backed stablecoin, JPYC, was issued by a fintech company, according to regulator data.
The BOK also calls for unanimous approval from all relevant authorities, including inspectors, but the FSC states that its own approval is sufficient, according to the sources. Observers suggest that a possible compromise could allow issuers to retain a stake commensurate with their business model.
The proposed stablecoin law is expected to introduce comprehensive regulations for digital assets, including licensing requirements, operating standards, capital and solvency rules, listing and disclosure obligations, as well as supervisory and enforcement measures, regulators said.
