South Korea is pushing to complete a new digital asset law by January after ruling and opposition lawmakers agreed on a stablecoin framework after months of stalled negotiations.
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South Korea’s ruling and opposition parties have agreed on a bank-led consortium model for issuing won stablecoins. Lawmakers have set a December 10 deadline for the government to introduce the bill, with the aim of passing it in January. Additional reforms will strengthen financial security rules, expand AML oversight, and support capital market transparency.
Lawmakers met behind closed doors to resolve a central dispute over who can issue won-based stablecoins. According to a Dec. 1 report in Maeli Business News, the parties have agreed to a consortium model in which banks will hold a majority stake but will allow tech companies to participate.
This structure aims to satisfy the Bank of Korea’s focus on financial stability while giving the private sector room to innovate. It also provides the basis for what authorities have described as a “Korean-style stablecoin” with clear safeguards regarding reserves and issuance.
Government has deadline to submit proposals on December 10th
Rep. Kang Joon-hyun, a senior Democratic Party member, said the government needs to submit an official proposal by December 10. If the deadline is not met, lawmakers say they plan to move forward with their own version.
The current goal is to pass the bill at an extraordinary session of the National Assembly in January, after internal coordination with the ruling People’s Power Party and the presidential office.
This new law builds on the Digital Asset Basic Law passed earlier this year, which sets licensing standards for issuers, reserve protection rules, and compliance obligations for virtual asset service providers.
The new law aims to fill the last major gap by treating digital assets like traditional financial products. It also sets clearer ground rules for US-based stablecoins, which becomes increasingly important as global players like USDT and USDC continue to dominate the market.
Timely progress is important in South Korea, officials said, as the adoption of cryptocurrencies continues to increase, especially among the 20 to 50-year-old demographic. Delays in domestic regulation have raised concerns that domestic companies could fall behind markets such as the US, EU and Japan, which are tightening oversight of stablecoins in 2025.
Additional reforms target securities and capital markets
The meeting also took up separate bills on financial security and market transparency. Lawmakers are planning to revise the Electronic Financial Transactions Act after multiple hacking incidents occurred at major financial companies. Proposed changes include stronger penalties and post-incident enforcement.
The government is also working with opposition parties on a series of capital market reforms. This includes mandating tender offers in certain corporate situations and updating rules on how shares are allocated to provide fairer access to the investing public.
