South Korea’s FSC missed a deadline for a stablecoin bill as the regulatory roadmap stalled due to a clash with the Bank of Korea over bank-led issuance and approval powers.
summary
- The FSC failed to submit its stablecoin bill by the December 10 deadline, citing the need for additional time to coordinate with other institutions.
- The Bank of Korea wants stablecoin issuers to be majority-owned by banks with broad veto powers, while the FSC wants a more flexible model in conjunction with MiCA and Japan.
- The postponed Digital Asset Basic Act (Phase 2) is expected to establish licensing, capital, disclosure, and enforcement rules for South Korea’s stablecoin and digital asset markets.
According to local reports, the Financial Services Commission of Korea (FSC) has missed a deadline to submit a stablecoin bill to the National Assembly as regulators continue to debate the requirements for issuing digital tokens.
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The National Assembly Political Affairs Committee had asked the Financial Services Commission to submit the government’s proposal by the 10th, but sources at the Financial Services Commission said they informed the committee that it would be difficult to meet the deadline.
“FSC was unable to submit the government’s proposal within the required deadline,” the official said. “They simply stated that they needed more time to reconcile their positions with the relevant authorities.”
According to local reports, South Korea’s ruling party plans to submit a stablecoin bill titled the “Digital Asset Basic Law (Second Stage Virtual Asset Law)” by January 2026 at the latest.
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The FSC said the government’s proposals will be made public as soon as they are submitted to Parliament. Financial authority officials pointed out that this dual approach is aimed at protecting the public’s right to information, and allows the bill to be submitted to lawmakers and explained to the public at the same time.
According to financial regulators, the FSC is coordinating with the Bank of Korea (BOK) on the government’s stablecoin bill, with the main issues focused on who can issue digital tokens.
Sources said the Bank of Korea has insisted that stablecoin issuers should be primarily controlled by a consortium of banks that owns at least 51% of the company’s shares, citing the need to stabilize the currency and protect the broader financial system.
The FSC has objected to the BOK’s bank-led issuance requirement, citing limited global precedent, sources said. According to regulatory data, under the framework of the European Union’s Market for Cryptoassets (MiCA), 14 out of 15 stablecoin issuers are digital currency companies, and Japan’s first yen-backed stablecoin JPYC was issued by a fintech company.
The Bank of Korea is also seeking unanimous approval from relevant authorities, including inspectors, but the Financial Services Commission insists that its own approval is sufficient, according to people familiar with the matter. Observers have suggested that a potential compromise could allow issuers to hold stakes proportionate to their business models.
The proposed stablecoin bill would introduce comprehensive regulations for digital assets, including licensing requirements, operating standards, capital and solvency rules, listing and disclosure obligations, and oversight and enforcement measures, according to the regulator.
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