🇰🇷 Stablecoin Uncertainty Continues: South Korea Misses Deadline, Bill Pushed to 2026
SEOUL, South Korea — South Korea’s highly anticipated push to legalize won-pegged stablecoins has hit a significant roadblock. The Financial Services Commission (FSC), the nation's top financial regulator, has failed to submit its stablecoin regulation bill by the government-set deadline of December 10, deferring the next steps into 2026.
The delay prolongs a period of regulatory uncertainty for the burgeoning South Korean digital asset sector, where all forms of cryptocurrency and stablecoin issuance currently remain illegal. The ruling Democratic Party had been pushing to introduce a consolidated bill by the end of January 2026, making the FSC's missed deadline a notable setback against the political timeline.
🛑 Key Reason for the Delay: Inter-Agency Conflict
The primary cause for the delay appears to be an unresolved tug-of-war between the FSC and the Bank of Korea (BOK), the country’s central bank, over the fundamental structure of the new regulations.
Clash over Issuers: The BOK has staunchly advocated for a framework that would only permit stablecoin issuance by consortia where domestic banks hold a controlling stake (over 51%). This stance is motivated by concerns over monetary policy control and systemic risk.
FSC's Stance: The FSC, conversely, has argued against mandating a bank-majority model, citing a lack of global precedent. It favors an approach that allows Fintech companies and non-bank entities to actively participate in the market, aligning with models seen in the European Union and Japan.
Supervisory Authority: Disputes also exist over supervisory powers, with the BOK seeking a strong role, including the authority to request inspections and a potential veto over issuance approvals—powers the FSC deems excessive.
An FSC spokesperson acknowledged the missed deadline, stating, "We were unable to submit a proposal within the requested timeframe. The simple fact is that the FSC needed more time to coordinate its position with the relevant agencies."
⏳ What Happens Next? The 2026 Outlook
Despite the setback, the regulatory process has not stalled entirely, but its timeline has shifted:
Imminent Proposal Release: The FSC has indicated it will "soon make public" the terms of its proposal, tentatively titled the Basic Digital Asset Act. The regulator aims to announce this proposal simultaneously with its submission to the National Assembly, in a move to increase public transparency. This is expected to occur before the end of December or, at the very latest, early January 2026.
Lawmakers' Role: The ruling party remains committed to its January 2026 introduction goal. Lawmakers have previously warned that a delayed government bill could prompt them to advance legislator-initiated bills independently, signaling a strong political will to regulate the space quickly.
Industry Pressure: South Korean financial groups, including KB Financial Group and Shinhan Financial Group, are already exploring consortia for won-linked stablecoin issuance. This private-sector readiness is putting immense pressure on regulators to finalize a workable framework and allow the domestic market to catch up with rivals in the US and Asia.
The delay, while frustrating for stakeholders, underscores the complexity of drafting robust regulation for stablecoins, which straddle the line between traditional finance and new digital assets. The coming weeks will be critical as the FSC's final proposal is unveiled, setting the stage for a potential legislative showdown in the National Assembly in early 2026.
