- The new law builds on the Digital Asset Framework and adds detailed rules for stablecoin oversight.
- This framework clarifies how global stablecoins such as USDT and USDC will be treated in South Korea.
- Officials warn that delays could leave the country behind other jurisdictions that tighten rules in 2025.
South Korea has taken a major step toward formalizing how won-backed stablecoins are issued and supervised, after years of parliamentary debate over who should oversee the process.
In closed-door meetings, lawmakers resolved the core question of authority, agreeing that banks should play the lead role while allowing technology firms to participate.
The move comes as cryptocurrency adoption rises among people aged roughly 20 to 50, and as global players continue to dominate the stablecoin market.
With a December deadline approaching, regulators want to finalize a structure that supports innovation while putting financial stability at the center of oversight.
Consortium model defines the roles of banks and tech firms
According to Maeil Business Newspaper on December 1, legislators agreed on a consortium model in which banks would hold the majority stake in stablecoin issuing entities.
Tech companies may participate, but financial institutions will lead efforts to mitigate systemic risks.
The goal is to create a Korean-style stablecoin framework that reflects traditional financial safeguards and establishes clear rules for reserves, issuance, and supervision.
The model is designed to address the Bank of Korea’s concerns about protecting the money supply.
It also aims to provide a common structure for private firms, reducing the risk that fragmented products without robust stability mechanisms flood the market.
By setting shared standards early, policymakers hope to support a domestic stablecoin ecosystem that encourages innovation without undermining financial safety.
Government sets proposal deadline of December 10
Senior Democratic Party lawmaker Kang Jun-hyun said the government must submit its proposal by December 10; if the deadline is missed, lawmakers will advance their own bill.
The objective is to finalize the proposal after consultations with the ruling People Power Party and the presidential office, and to pass the law during the National Assembly’s special session in January.
The new legislation will expand on the Digital Asset Framework passed earlier this year.
That earlier law established licensing rules for issuers, reserve protection requirements, and compliance obligations for virtual asset service providers.
The forthcoming bill intends to close remaining regulatory gaps by specifying how stablecoins should be treated when they operate like traditional financial instruments.
It also provides clearer guidance for U.S.-based stablecoins such as USDT and USDC, which are gaining influence in South Korea’s growing digital asset market.
Pushed to keep pace with global market developments
Stakeholders warn that delays could leave Korean firms lagging behind global competitors.
The United States, the EU, and Japan have all moved to strengthen stablecoin rules in 2025, creating a clearer environment for exchanges and financial institutions.
Korean regulators want to avoid losing momentum, especially as domestic interest in crypto assets continues to grow.
The updated framework aims to reduce uncertainty for developers, banks, and exchanges.
Bringing digital assets closer to mainstream financial supervision is intended to support responsible growth and ensure consumers have access to properly regulated products.
The focus is on aligning the domestic market with international standards while preserving room for private-sector innovation.
Lawmakers discuss broader reforms for security and markets
Lawmakers also discussed plans to update financial security and capital market rules.
Following recent hacking incidents at major financial firms, authorities are seeking amendments to the Electronic Financial Transactions Act (EFTA).
Proposed changes include tougher penalties and stronger enforcement following cyber breaches.
Lawmakers are cooperating with opposition parties on part of a capital market reform package.
That package could include rules requiring mandatory tender offers in certain corporate situations.
Updates to share allocation standards are also planned to help ensure retail investors receive fairer access.
The broader aim is to enhance transparency and strengthen market health as South Korea restructures its financial regulatory environment.