South Korea moves to tighten regulation of stablecoins using bank-led model

• The new law builds on the Digital Asset Basic Law and adds detailed rules regarding the supervision of stablecoins.
• This framework outlines how global stablecoins such as USDT and USDC will be treated in South Korea.
• Officials have warned that delays could leave South Korea behind other regions that tighten restrictions in 2025.

South Korea is taking a major step toward formalizing how won-based stablecoins will be issued and supervised after lawmakers resolved a long-standing dispute over who should control the process.

The closed-door meeting clarified the core question of authority, with policymakers agreeing that banks should lead the effort while allowing tech companies to participate.

The move comes at a time when cryptocurrency adoption is increasing among people between the ages of 20 and 50, and global players continue to dominate the stablecoin market.

As the December deadline approaches, officials hope to finalize a structure that supports innovation while putting financial stability at the center of regulation.

Consortium model defines roles for banks and technology companies

According to a Dec. 1 report in Maeri Business Newspaper, lawmakers have agreed to a consortium model in which banks maintain majority control of the stablecoin issuer.

Tech companies will still be able to participate, but financial institutions will take the lead in mitigating systemic risk.

The goal is to create a Korean-style stablecoin framework that mirrors traditional financial safeguards, with clear rules governing reserves, issuance, and supervision.

This model was designed in line with the Bank of Korea’s concerns about protecting the money supply.

It also provides a common structure for private companies and reduces the risk of fragmented products coming to market without consistent stability mechanisms.

By setting common standards early, policymakers hope to create a domestic stablecoin ecosystem that can support innovation without compromising financial security.

The government has set a deadline for proposals on December 10th.

Kang Joon-hyun, a senior lawmaker from the Democratic Party, said the government must submit the bill by December 10. If the deadline passes, lawmakers will move forward with their own bills.

After consultation with the ruling People’s Power Party and the presidential office, the aim is to pass the bill at an extraordinary session of the National Assembly in January.

This new law is an expansion of the Digital Asset Basic Law passed earlier this year.

That previous law established licensing rules for issuers, reserve protection requirements, and compliance obligations for virtual asset service providers.

Future legislation will fill remaining regulatory gaps by specifying how stablecoins should be managed when operated like traditional financial products.

It also provides clear guidance for US-based stablecoins such as USDT and USDC, which are becoming increasingly influential in South Korea’s growing digital asset market.

Drive in line with global market advances

Officials have warned that the delay could leave South Korean companies behind global competitors.

The US, EU, and Japan tightened stablecoin rules in 2025, creating a clearer picture for exchanges and financial institutions.

South Korean regulators want to avoid losing momentum, especially as interest in cryptocurrencies in the country continues to grow.

The updated framework aims to reduce uncertainty for developers, financial companies and exchanges.

By bringing digital assets closer to mainstream financial oversight, authorities hope to support responsible growth and ensure consumers have access to well-regulated products.

The focus is on keeping the domestic market in line with international standards while preserving space for private sector innovation.

Lawmakers debate wide-ranging reforms on security and markets

Plans to update financial security and capital market rules were also discussed at the meeting.

In response to recent hacking incidents at major financial companies, authorities are planning to revise the Electronic Financial Transactions Act.

Proposed changes include stronger penalties and increased enforcement after a cyber breach.

Lawmakers are also working with opposition parties on a series of capital market reforms.

These include rules requiring compulsory takeover offers in certain corporate situations.

The company also plans to update its stock allocation criteria so that general investors can more equitably obtain stocks.

The goal is to improve transparency and strengthen market integrity as South Korea restructures its financial regulatory environment.