- 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 regions that tightened rules in 2025.
South Korea is taking a significant step toward formalizing the issuance and oversight of won-backed stablecoins, after lawmakers resolved a long-running dispute over which authorities should control the process.
A closed-door meeting clarified the core question of jurisdiction: policymakers agreed that banks should lead the effort while still allowing technology firms to participate.
This move comes as cryptocurrency adoption grows among people aged 20 to 50 and as global players continue to dominate the stablecoin market.
With a December deadline approaching, officials aim to complete a structure that supports innovation while keeping financial stability at the center of regulation.
Consortium model defines the roles of banks and tech firms
A Maeli Business Newspaper report on December 1 said lawmakers agreed on a consortium model in which banks would hold majority control over entities that issue stablecoins.
Technology companies will still be able to participate, but financial institutions will take the lead in reducing systemic risks.
The goal is to create a Korea-style stablecoin framework that reflects the safeguards of traditional finance, with clear rules governing reserves, issuance, and supervision.
The model was designed to address the Bank of Korea’s concerns about protecting the money supply.
At the same time, it provides a common structure for private companies, reducing the risk of fragmented products entering the market without consistent stability mechanisms.
By setting shared standards early, policymakers hope to foster a domestic stablecoin ecosystem that supports innovation without compromising financial safety.
Government faces a December 10 deadline to submit its proposal
Senior Democratic Party lawmaker Kang Joon-hyun said the government must submit its proposal by December 10. If it misses the deadline, lawmakers will proceed with their version of the bill.
The aim is to pass the legislation during an extraordinary session of the National Assembly in January, after consultations with the ruling People Power Party and the presidential office.
This new law expands the Digital Asset Basic Act, which was adopted earlier this year.
The earlier law established licensing rules for issuers, reserve protection requirements, and compliance obligations for virtual asset service providers.
The proposed law fills remaining regulatory gaps by specifying how stablecoins should be governed when they operate similarly to traditional financial instruments.
It also provides clearer guidance for U.S. stablecoins such as USDT and USDC, which are increasingly influential in Korea’s growing digital asset market.
Effort to keep pace with global market developments
Officials warn that delays could leave Korean firms trailing their global counterparts.
The U.S., EU and Japan strengthened their stablecoin rules in 2025, creating clearer environments 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 supervision, authorities hope to support responsible growth and give 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 broader reforms in security and markets
The meeting also covered planned updates to financial security and capital market rules.
In response to recent hacking incidents at large financial firms, officials intend to revise the Electronic Financial Transactions Act.
Proposed changes include tougher penalties and stronger enforcement following cyber incidents.
Lawmakers are also working with opposition parties on a package of capital market reforms.
These changes would include rules that mandate tender offers in certain corporate situations.
They also plan to update share allocation standards to give ordinary investors fairer access to offerings.
The goal is to improve transparency and strengthen market integrity as Korea reshapes its financial regulatory landscape.