South Korea’s Financial Services Commission failed to meet a deadline to submit draft legislation on stablecoin regulation, highlighting ongoing disagreements among regulators, lawmakers, and the central bank over how digital tokens should be governed. The deadline, set by the ruling Democratic Party of Korea, was intended to accelerate the creation of a legal framework for stablecoins amid growing domestic and global adoption.
South Korea’s Financial Services Commission (FSC) failed to submit a won-stablecoin regulatory bill by the Dec. 10 government deadline, citing the need for further inter-agency coordination. The delay reflects ongoing disagreements with the Bank of Koreawhich seeks veto power…
— Wu Blockchain (@WuBlockchain) December 14, 2025
The FSC said it required additional time to coordinate positions with other government agencies, reflecting unresolved policy differences. At the center of the debate is the Bank of Korea’s proposal to limit stablecoin issuance to a consortium of banks holding a controlling stake in any approved issuer. Lawmakers on the ruling party’s Digital Asset Task Force have pushed back, arguing that such restrictions could suppress innovation and entrench incumbents in a fast-moving sector.
Central Bank Role and Issuer Restrictions
The Bank of Korea has framed its position around financial stability, emphasizing the systemic risks that could arise if widely used stablecoins are issued outside traditional banking oversight. Under its proposal, approval decisions would also involve a policy consultative body requiring unanimous agreement among the central bank, the finance ministry, and the FSC.
Members of the Digital Asset Task Force have acknowledged the need for coordination but warned that excessive central bank control could slow product development and deter non-bank issuers, including fintech firms and technology companies. The debate reflects a broader global tension between prudential safeguards and competitive market access, particularly as jurisdictions such as the United States and the European Union move ahead with clearer stablecoin regimes.
Timeline and Market Implications
Lawmakers now expect a consolidated stablecoin bill to be introduced in January 2026, with preparatory discussions scheduled later this month. The delay prolongs regulatory uncertainty for domestic crypto firms, which currently operate under anti-money laundering registration rules rather than a comprehensive market framework.
Institutional participants have been watching the process closely, as South Korea remains one of Asia’s most active digital asset markets. A bank-centric model could favor established financial institutions, while a more open regime may attract global issuers seeking access to Korean users. Until a compromise is reached, firms face limited visibility on capital requirements, issuance approvals, and the role of the central bank in ongoing supervision.
The outcome is likely to shape South Korea’s competitive position in the regional stablecoin landscape, as policymakers weigh financial stability against innovation and market access in an increasingly tokenized payments environment.