South Korea is entering a decisive phase in its digital asset regulation push as the ruling Democratic Party sets a December 10, 2025 deadline for the government to submit a unified, government-backed stablecoin bill.
If regulators fail to deliver, lawmakers say they will take matters into their own hands and advance legislation independently, a rare and aggressive move that highlights the growing urgency to establish clear rules for won-backed stablecoins.
At the heart of the standoff is a fundamental power struggle between the Bank of Korea (BOK) and the Financial Services Commission (FSC). Both institutions agree that stablecoins need formal regulation, but they sharply disagree on who should control issuance and under what conditions that authority should be granted.
A Clash Between Central Bank Power and Open-Market Innovation
The Bank of Korea is pushing for a strict structure in which banks must hold at least a 51% controlling stake in any stablecoin issuer. Officials argue that stablecoins affect monetary stability, bank liquidity, and AML safeguards, areas the central bank believes should remain tightly controlled.
The Financial Services Commission strongly disagrees. The FSC warns that giving the central bank majority control over issuers would concentrate too much power and could stifle innovation, especially from South Korea’s powerful technology sector. The FSC instead advocates for a more open, flexible issuance framework that allows non-bank entities, including giants like Naver and Kakao, to play a direct role in stablecoin creation and operation.
This clash has stalled progress on three competing stablecoin bills, all currently under review in the National Assembly.
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Private Sector Moves Ahead Despite Legislative Gridlock
Even without regulatory clarity, the private sector is not waiting. A coalition of major commercial banks has already begun exploring a won-backed stablecoin aimed at streamlining domestic payments and cross-platform financial services.
At the same time, tech giants continue to move forward independently with blockchain payment tools, wallet integrations, and early stablecoin prototypes. Their rapid development puts additional pressure on regulators to finalize a framework before market innovation outpaces legislative authority.
The Likely Compromise Taking Shape
Analysts in Seoul increasingly expect a dual-authority model to emerge:
- •The FSC would manage licensing, supervision of business practices, and compliance, ensuring fair competition across financial and tech players.
- •The BOK would oversee reserves, monetary stability, and systemic risk, similar to how central banks monitor settlement infrastructure.
Such a split could resolve the institutional rivalry while ensuring that stablecoins remain both innovative and secure in one of the world’s most technologically advanced economies.
What’s Next
If the government fails to present a unified bill by December 10, the ruling party appears ready to push its own draft through committee, signaling that South Korea sees stablecoins not as an optional experiment, but as an essential component of its future financial system.
The next two weeks will determine whether the country achieves regulatory alignment or plunges into a rare political confrontation over the future of digital money.