South Korea Demands Stablecoin Bill Ahead of Deadline
- South Korea demands stablecoin legislation by December 10 deadline.
- Kang Joon-hyun leads efforts for timely submission.
- Bank-led consortium model faces fintech opposition.
South Korea’s ruling Democratic Party, led by Kang Joon-hyun, has demanded the government submit a stablecoin bill by December 10, 2025, threatening independent legislative action if unfulfilled.
The ultimatum could impact South Korea’s fintech landscape and align with global stablecoin trends, emphasizing banking authority while potentially influencing DeFi protocols and Korean cryptocurrency exchanges.
South Korea’s Stablecoin Regulatory Push
South Korea’s ruling party issued an ultimatum, urging the government to submit a stablecoin bill by December 10, 2025. Failure to comply will lead to the National Assembly pursuing independent legislation. This demand aligns with their political strategy.
Kang Joon-hyun, head of the Democratic Party’s Political Affairs Committee, leads the initiative. The proposed legislation insists on a bank-led consortium model for stablecoin issuance, demanding banks hold a 51% stake.
The bill affects South Korean commercial banks and fintech companies, with anticipated impacts on cryptocurrency markets. The proposal to prioritize bank involvement has divided government entities, sparking debates on monetary stability and innovation.
The Financial Services Commission and Bank of Korea disagree on legislative specifics. The FSC promotes fintech inclusion, while the BOK supports stricter control to maintain economic stability. Legislative drafts are being expedited as the deadline nears.
If passed, a 52% rise in regulatory clarity for stablecoin projects is expected, potentially boosting market confidence. Historical precedents show South Korea aligning with global stablecoin trends, impacting won-backed stablecoins significantly.
Financial, regulatory, and technological implications of the bill are under scrutiny. Adoption could redefine the South Korean crypto landscape, especially as global stablecoin regulations solidify. Market dynamics and DeFi protocols linked to stablecoins may change.
“The contentious issue regarding who will issue stablecoins has been settled in a ‘consortium format’ through alignment among Bank of Korea, the Financial Services Commission, and the banking sector, and if the government does not present its proposal by this deadline, we will advance with legislation spearheaded by lawmakers through the Political Affairs Committee.”
