Lawmaker Kang Jun-hyun of the Democratic Party has issued a definitive warning to financial regulators: they must submit a unified government proposal for the stablecoin bill by December 10, or parliament will act unilaterally. This move seeks to break the months-long deadlock over who will control the issuance of these digital assets, intensifying pressure on the Financial Services Commission (FSC) to resolve internal disputes.
According to National Assembly reports, the critical friction point remains the Bank of Korea’s demand that banks hold at least 51% of any issuing consortium. On the other hand, the FSC advocates for lowering entry barriers to allow tech companies to participate actively, arguing that excessive restrictions would stifle innovation in the sector. Meanwhile, three bills proposing minimum capital requirements of 5 billion won are under review.
Could technological innovation survive the strict demands of state banking control?
This legislative clash is crucial because it will determine whether South Korea adopts a conservative bank-led model or one open to fintech giants like Naver and Kakao. The urgency is compounded by private market advancements, where Naver Financial has already completed wallet development for Busan’s Dongbaek-jeon program. Furthermore, the lack of regulatory clarity has delayed the country’s competitiveness against economies like Japan and the European Union, which have already formalized their frameworks.
Likewise, the implementation of new anti-money laundering (AML) regulations and the “Travel Rule” for transactions under 1 million won adds another layer of complexity. The Bank of Korea recently warned in an October report that stablecoins without adequate backing could destabilize national capital flow management. Therefore, the resulting legislation must balance monetary security with the imperative need for financial modernization.
To conclude, if regulators fail to reach a consensus before the deadline, direct intervention by lawmakers could accelerate the approval of a stricter or more fragmented framework. Major banks, exploring their own tokens for 2026, and tech firms are expected to quickly adjust their strategies regarding any final draft. Consequently, investors must prepare for a significant shift in the structure of the Korean crypto asset market in the near term.
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