South Korea Lawmakers Threaten to Bypass Regulators on Stablecoin Rules

South Korea's lawmakers have set a firm December 10 deadline for financial regulators to submit a draft stablecoin regulatory framework, warning they will proceed with independent legislation if the government fails to meet the target. The ultimatum, issued by the ruling Democratic Party, underscores growing frustration over stalled negotiations between the Financial Services Commission (FSC) and the Bank of Korea (BOK) over the role of banks in stablecoin issuance. Kang Joon-hyun, a key Democratic Party lawmaker, emphasized that if the FSC does not deliver the draft by the deadline, the party will push for a legislator-initiated bill through the political affairs committee, with potential review in the National Assembly's January 2026 session [according to reports](https://cointelegraph.com/news/south-korea-stablecoin-bill-deadline-december-10).

The core dispute centers on whether banks should dominate stablecoin issuance through a consortium with at least 51% equity control, as favored by the BOK, or whether a more inclusive model accommodating fintech firms should be adopted, as advocated by the FSC [according to analysis](https://en.coinotag.com/south-korea-sets-dec-10-deadline-for-stablecoin-regulation-draft-amid-bank-disputes). The BOK argues that majority bank ownership is critical to maintaining monetary stability and preventing systemic risks, while the FSC contends that excessive restrictions could stifle innovation. This tension has delayed progress on a regulatory framework, with the FSC [recently confirming](https://cryptonews.com/news/south-korea-stablecoin-bill-december-10-deadline/) no final decision has been made on the consortium structure.

The proposed legislation, part of the broader Digital Asset Basic Act, aims to establish a "Korean-style stablecoin" framework anchored by bank-led consortia. Under the plan, technology firms would retain minority stakes, balancing stability with innovation. The FSC and BOK have agreed to expedite the bill, but specifics such as reserve requirements and issuance limits remain unresolved [according to sources](https://www.coinglass.com/news/761660). Market observers warn that delays could leave South Korea lagging behind global peers like the U.S., EU, and Japan, which have already updated stablecoin rules in 2025 [according to reports](https://en.coinotag.com/south-korea-advances-stablecoin-regulation-with-bank-led-consortium-model-by-2026).

Parallel regulatory efforts are tightening anti-money laundering (AML) measures, including expanding surveillance to all transaction sizes. This follows concerns about "smurfing" tactics using sub-$680 transfers to evade monitoring. High-risk offshore exchanges may also face restrictions, aligning with the FSC's push to professionalize the crypto sector [according to analysis](https://coinjournal.net/news/south-korea-moves-to-tighten-stablecoin-rules-with-a-bank-led-model/).

The December 10 deadline has intensified political pressure, with rival parties accelerating their own legislative proposals. Three separate bills are now under review, differing on issues like interest on stablecoin holdings and capital requirements. Kang's office stressed the need for bipartisan coordination to finalize the framework before January 2026, when the National Assembly is expected to pass the Digital Asset Basic Act [according to reports](https://en.cryptonomist.ch/2025/12/01/korean-stablecoin-framework/).

Failure to meet the deadline risks a fragmented regulatory landscape, with lawmakers bypassing the FSC to fast-track legislation. This scenario could accelerate oversight but may deepen divisions between regulators and the private sector. As the clock ticks, South Korea's ability to balance monetary stability with crypto innovation will define its position in the global digital asset arena.