- New legislation builds on the Digital Asset Basic Act by adding detailed rules for the supervision of stablecoins.
- The framework defines how global stablecoins, such as USDT and USDC, will be treated in Korea.
- Officials warn that delays could leave Korea behind other jurisdictions that tightened rules in 2025.
South Korea is taking a significant step toward formalizing the issuance and oversight of won-backed stablecoins after legislators resolved a long-running dispute over who should oversee the process.
A closed-door meeting clarified the core power question, and decision-makers agreed that banks should lead the effort while allowing technology firms to participate.
This move comes as cryptocurrency adoption grows among people aged 20–50 and as global firms continue to dominate stablecoin markets.
With a December deadline approaching, authorities want to finalize a structure that supports innovation while keeping monetary stability and financial regulation central.
Consortium model defines roles for banks and tech companies
According to a report published December 1 by Maeli Business Newspaper, lawmakers agreed on a consortium model under which banks would retain majority control over entities issuing stablecoins.
Technology companies may still participate, but financial institutions will take the lead in reducing systemic risks.
The aim is to create a Korean-style stablecoin framework that mirrors traditional financial safeguards and sets clear rules for reserves, issuance and supervision.
The model was designed to address the central bank’s concerns about protecting the country’s money supply.
It also provides a shared structure for private firms, reducing the risk that fragmented products will reach the market without consistent stability mechanisms.
By establishing common standards early, policymakers hope to shape a domestic stablecoin ecosystem that can support innovation without compromising financial security.
Government must submit proposal by December 10
Senior Democratic Party lawmaker Kang Joon-hyun said the government must submit its proposal by December 10. If it misses that deadline, legislators will advance their own version of the bill.
The goal is to pass the legislation during a special parliamentary session in January, following negotiations with the ruling People Power Party and the presidential office.
The new law would expand the Digital Asset Basic Act passed earlier this year.
The existing act established licensing rules for issuers, requirements for reserve protection, and compliance obligations for virtual asset service providers.
The forthcoming bill aims to close remaining regulatory gaps by defining how stablecoins should be governed when they function like traditional financial instruments.
It will also provide clearer guidance for U.S.-based stablecoins such as USDT and USDC, which are increasingly influential in Korea’s growing digital asset market.
Effort to keep pace with global markets
Officials warn that delays could leave Korean firms behind international competitors.
The United States, the EU and Japan reinforced their stablecoin rules in 2025, creating a clearer regulatory environment for exchanges and financial institutions.
Korean regulators want to avoid losing momentum, especially as domestic interest in cryptocurrencies continues to rise.
The updated framework aims to reduce uncertainty for developers, financial firms and exchanges.
By bringing digital assets closer to mainstream financial oversight, authorities hope to support responsible growth and provide consumers access to well-regulated products.
The emphasis is on aligning the domestic market with international standards while preserving room for private-sector innovation.
Lawmakers discuss broader security and market reforms
The meeting also addressed planned updates to financial security and capital market rules.
Following recent cyberattacks on major financial firms, authorities plan to revise laws governing electronic financial transactions.
Proposed changes include tougher penalties and stricter oversight in the aftermath of cyber intrusions.
Lawmakers are also working with opposition parties on capital market reforms.
These reforms would include rules that mandate tender offers in certain corporate situations.
They also plan to update share allocation standards to ensure fairer access to offerings for retail investors.
The objectives are to increase transparency and strengthen market integrity as Korea reshapes its financial regulatory landscape.