South Korea’s ruling and opposition parties have reached a breakthrough on a regulatory framework for stablecoins as part of the broader Digital Asset Basic Act. According to local reports, lawmakers plan to pass the full legislation by January 2026.
The proposal introduces a “Korean-style stablecoin” issued through a consortium model where banks must hold at least 51% equity. Technology companies may participate as minority partners, ensuring bank-led stability while allowing private-sector innovation.
Representative Kang Jun-hyeon set December 10 as the deadline for government proposals and warned that lawmakers may file their own version if authorities miss it.
Discussions have focused on balancing the interests of the Bank of Korea, the Financial Services Commission, and commercial banks. The model aims to protect monetary stability, address concerns about crypto-driven financial risks, and open the door for fintech participation.
Experts say bank-centered issuance offers strong safeguards but reduces profit incentives because stablecoin reserves cannot be used for lending.
You need to login in order to Like
Leave a comment