South Korea’s Stablecoin Bill Faces Decisive Deadline Amid Regulatory Standoff
South Korea's stablecoin legislation faces a critical December 10 deadline, with lawmakers threatening unilateral action if financial authorities fail to deliver a draft bill. The Phase 2 Digital Assets legislation, stalled for months, centers on whether banks or tech firms should control won-pegged stablecoin issuance.
Closed-door meetings at the National Assembly revealed deepening divisions. Conservative factions demand at least 50% bank participation, echoing Bank of Korea concerns about monetary policy risks. Reformists, including Financial Services Commission allies, advocate for broader industry participation.
The impasse reflects global regulatory tensions as jurisdictions grapple with balancing financial stability against innovation. Seoul's decision could influence Asia's approach to private digital currencies.
