Korea stablecoin bill delay exposes FSC–BOK clash over bank-led issuance

South Korea’s FSC missed its stablecoin bill deadline as a clash with the Bank of Korea over bank-led issuance and approval powers leaves the regulatory roadmap in limbo.

South Korea’s Financial Services Commission (FSC) failed to meet its deadline to submit a proposed stablecoin bill to the National Assembly, according to local reports, as regulatory authorities continue to debate issuance requirements for the digital tokens.

South Korea’s ongoing crypto trajectory

The National Assembly’s Political Affairs Committee had requested the FSC submit the government’s proposal by the 10th, but the agency notified the committee that meeting the deadline would be challenging, according to an FSC official.

“The FSC was unable to submit the government’s proposal within the requested timeframe,” the official stated. “They simply stated that they needed more time to coordinate their positions with relevant agencies.”

South Korea’s ruling party plans to introduce a stablecoin bill, titled the “Basic Digital Asset Act (Phase 2 Virtual Asset Act),” by January 2026 at the latest, according to local reports.

The FSC stated that the government’s proposal would be submitted to the National Assembly while also being released publicly. A financial authority official noted that this dual approach is intended to safeguard the public’s right to information, allowing the bill to be presented to lawmakers and explained externally at the same time.

The FSC is coordinating with the Bank of Korea (BOK) on the government’s stablecoin bill, with the primary point of contention focusing on who can issue the digital tokens, according to financial authorities.

The BOK has argued that stablecoin issuers should be primarily managed by a bank consortium holding at least 51% of the company’s shares, citing the need to safeguard currency stability and protect the broader financial system, according to sources familiar with the matter.

The FSC has pushed back against the BOK’s bank-led issuance requirement, citing limited global precedent, according to the sources. Under the European Union’s Markets in Crypto-Assets (MiCA) framework, 14 of 15 stablecoin issuers are digital currency firms, and Japan’s first yen-backed stablecoin, JPYC, was issued by a fintech company, according to regulatory data.

The BOK also calls for unanimous approval from all relevant authorities, including inspectors, but the FSC argues that its own approval is sufficient, according to the sources. Observers suggest a potential compromise could allow issuers to hold a stake proportional to their business model.

The proposed stablecoin bill is expected to introduce comprehensive regulations for digital assets, covering licensing requirements, operational standards, capital and solvency rules, listing and disclosure obligations, as well as oversight and enforcement measures, according to regulatory authorities.