- The new legislation builds on the Digital Asset Basic Act by adding detailed rules for stablecoin supervision.
- The framework outlines how global stablecoins like USDT and USDC will be treated in Korea.
- Officials warn that delays could leave Korea behind other regions that tightened regulations in 2025.
South Korea has taken a significant step toward formalizing how won-denominated stablecoins are issued and overseen, after legislators resolved a long-running dispute over which authority should control the process.
A closed-door meeting clarified the central issue of oversight: policymakers agreed that banks should lead issuance while technology firms may participate as partners.
The move comes as crypto usage rises among people aged 20 to 50 and as global players continue to dominate the stablecoin market.
With a December deadline approaching, authorities aim to finalize a structure that supports innovation while keeping financial stability at the core of regulation.
Consortium model defines roles for banks and tech firms
A report in Maeil Business on December 1 said lawmakers agreed on a consortium model in which banks retain majority control of stablecoin-issuing entities.
Technology companies will still be allowed to participate, but financial institutions will take the lead to reduce systemic risk.
The objective is to create a Korean stablecoin framework that mirrors protections from traditional finance, with clear rules for reserves, issuance and supervision.
The model was designed to align with the Bank of Korea’s concerns about safeguarding the money supply.
It also establishes a common structure for private firms, reducing the risk of fragmented products entering the market without consistent stability mechanisms.
By setting shared standards early, policymakers hope to shape a domestic stablecoin ecosystem that supports innovation without compromising financial security.
Government faces December 10 deadline for its proposal
Senior Democratic Party lawmaker Kang Joon-hyun said the government must submit its proposal by December 10. If it misses the deadline, legislators will advance their own version of the bill.
The goal is to pass the legislation during the National Assembly’s extraordinary session in January, following consultations with the ruling People Power Party and the presidential office.
This new law builds on the Digital Asset Basic Act adopted earlier this year.
The earlier law established licensing rules for issuers, reserve protection requirements and compliance obligations for virtual asset providers.
The upcoming bill fills remaining regulatory gaps by specifying how stablecoins should be treated when they function as traditional financial instruments.
It also provides clearer guidance for U.S. stablecoins such as USDT and USDC, which have become increasingly influential in Korea’s growing digital asset market.
Aim to match progress in global markets
Officials warn that delays could leave Korean firms trailing international competitors.
The U.S., EU and Japan strengthened their stablecoin rules in 2025, creating a more defined landscape for exchanges and financial institutions.
Korean regulators want to avoid losing momentum, especially as domestic interest in crypto continues to grow.
The updated framework aims to reduce uncertainty for developers, financial firms and exchanges.
By bringing digital assets closer to financial supervision, authorities hope to support responsible growth and offer consumers access to well-regulated products.
The focus is on aligning the domestic market with international standards while preserving room for private-sector innovation.
Lawmakers discuss wider reforms on security and markets
The meeting also addressed planned updates to financial security and capital market rules.
Following recent hacking incidents at major financial firms, authorities intend to revise the Electronic Financial Transactions Act.
Proposed changes include tougher penalties and stronger supervision in the wake of cyber intrusions.
Lawmakers are also working with opposition parties on a set of capital market reforms.
These measures would include requirements for mandatory tender offers in certain corporate situations.
They also plan to update allocation standards so ordinary investors gain fairer access to offerings.
The objective is to increase transparency and strengthen market integrity as Korea reshapes its financial regulatory environment.