South Korea Advances Digital Asset Act with Bank-Led Stablecoin Model

South Korea's Democratic Party is pushing to enact the Digital Asset Basic Act by January 2026, introducing a consortium-based stablecoin framework where banks retain majority control. Representative Kang Jun-hyeon set a December 10 deadline for government proposals, threatening independent legislative action if financial authorities delay.

The proposed model mandates banks hold at least 51% equity in stablecoin issuers, addressing the Bank of Korea's monetary stability concerns while allowing fintech participation. November discussions highlighted tensions between regulators and industry over equity requirements and entry barriers for non-banking players.

This 'Korean-style stablecoin' structure balances financial soundness with innovation, reflecting global central bank anxieties over private digital currencies. The FSC emphasized the need to accommodate fintech firms, suggesting ongoing negotiations over the consortium's final form.