Michaela
South Korea’s Financial Services Commission (FSC) has missed its deadline to submit a proposed stablecoin bill, amid ongoing debates over who should be authorized to issue the tokens.
Key Points
- South Korea’s FSC missed the stablecoin bill deadline, now expected by January 2026.
- Debate continues over whether banks or fintech companies should be allowed to issue stablecoins.
- The bill aims to establish comprehensive rules covering licensing, operations, capital, disclosure, and enforcement.
Local reports indicate that South Korea’s ruling party plans to introduce a stablecoin bill, titled the “Basic Digital Asset Act (Phase 2 Virtual Asset Act),” by January 2026 at the latest. Financial authorities and other sources said the National Assembly’s Political Affairs Committee had requested the FSC to submit the government’s proposal by the 10th, but the FSC notified the committee that meeting the deadline would be challenging.
“The FSC was unable to submit the government’s proposal within the requested timeframe,” an FSC official stated. “They simply stated that they needed more time to coordinate their positions with relevant agencies,” they added.
Additionally, the FSC stated that the government’s proposal would be submitted to the National Assembly while also being released publicly. A financial authority official noted that this dual approach is intended to safeguard the public’s right to information, allowing the bill to be presented to lawmakers and explained externally at the same time.
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The FSC is coordinating with the Bank of Korea (BOK) on the government’s stablecoin bill, with the main point of debate focusing on who can issue these digital tokens. The BOK argues that stablecoin issuers should be primarily managed by a bank consortium holding at least 51% of the company’s shares, citing the need to safeguard currency stability and protect the broader financial system.
However, the FSC has pushed back against the BOK’s bank-led issuance requirement, citing limited global precedent. Under the EU’s MiCA framework, 14 of 15 stablecoin issuers are digital currency firms, and Japan’s first yen-backed stablecoin, JPYC, was issued by a fintech company.
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The BOK also calls for unanimous approval from all relevant authorities, including inspectors, but the FSC argues that its own approval is sufficient. Observers suggest a potential compromise could allow issuers to hold a stake proportional to their business model.
The proposed stablecoin bill is expected to introduce comprehensive regulations for digital assets, covering licensing requirements, operational standards, capital and solvency rules, listing and disclosure obligations, as well as oversight and enforcement measures.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
