{"id":62974,"date":"2025-12-11T06:31:32","date_gmt":"2025-12-11T06:31:32","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=62974"},"modified":"2025-12-11T06:31:32","modified_gmt":"2025-12-11T06:31:32","slug":"south-koreas-stablecoin-legislation-hits-roadblock-as-fsc-misses-december-10-deadline","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=62974","title":{"rendered":"South Korea\u2019s Stablecoin Legislation Hits Roadblock As FSC Misses December 10 Deadline"},"content":{"rendered":"
\n

South Korea\u2019s government has reportedly missed the deadline to submit its highly anticipated stablecoin legislation, risking a delay of the second phase of the country\u2019s regulatory efforts to align with global standards and foster innovation.<\/p>\n

FSC Misses Key Deadline Amid BOK Disagreement<\/h2>\n

On Wednesday, local media outlets affirmed that the South Korean government failed to submit the long-awaited bill for the Second Phase of the Virtual Asset User Protection Act, which is expected to address the issuance and distribution of won-denominated stablecoins.<\/p>\n

Chosun Biz reported<\/a> that the Financial Services Commission (FSC) did not meet the National Assembly\u2019s submission deadline for the government\u2019s legislation. On December 1, authorities set December 10 as the deadline to submit the bill to the National Policy Committee.<\/p>\n

According to political circles cited by the report, the government bill was delayed because the FSC and the Bank of Korea (BOK) failed to resolve their differences over the issuance of won-pegged stablecoins.<\/p>\n

As reported<\/a> by Bitcoinist, local outlets stated in late November that South Korea\u2019s stablecoin legislation risked being delayed due to a disagreement between financial authorities and the central bank over the extent of banks\u2019 role.<\/p>\n

The BOK and FSC seemingly agreed that the financial institutions must be involved in the issuance of won-pegged tokens. However, the central bank has been pushing for a consortium of banks owning at least 51% of any stablecoin issuer seeking regulatory approval in the country.<\/p>\n

Meanwhile, the FSC was willing to involve diverse players in the process, expressing concern that giving a majority stake to banks could reduce participation from tech\u00a0firms and limit the market\u2019s innovation.<\/p>\n

The November report noted that the regulatory standoff<\/a> appeared to leave the market in limbo, with some tech companies actively preparing to get approval and others taking a cautious approach due to the unclear regulatory direction.<\/p>\n

Stablecoin Legislation Risks \u2018Prolonged Deliberation Process\u2019<\/h2>\n

Chosun Biz noted that the Democratic Party of Korea (DPK) initially intended to advance the second phase of its virtual asset bill by reviewing the government bill. Nonetheless, if the government draft continues to be delayed, the bills previously introduced by lawmakers could be reviewed first.<\/p>\n

Since June, multiple bills related<\/a> to the issuance and distribution of won-pegged stablecoins have been introduced in the National Assembly. Min Byung-deok, a member of the National Assembly\u2019s Government Committee, introduced the \u201cDigital Assets Basic Act, proposing enabling the issuance of won-pegged stablecoins and establishing a Digital Asset Committee under the direct authority of the president.<\/p>\n

In July, South Korea\u2019s ruling and opposition parties proposed rival bills to establish the highly anticipated regulatory framework. Notably, Ahn Do-gil, a member of the Planning and Finance Committee from the Democratic Party, introduced the \u201cAct on the Issuance and Distribution of Value-Stable Digital Assets.\u201d<\/p>\n

Similarly, Kim Eun-hye, a member of the Land, Infrastructure, and Transport Committee from the People Power Party (PPP), proposed the \u201cAct on Payment Innovation Using Value-Fixed Digital Assets.\u201d<\/p>\n

The two bills shared similarities, like the assignment of stablecoin oversight to the FSC.\u00a0However, they differed over the issue of interest payments, with the PPP\u2019s bill allowing interest payments and the DPK\u2019s bill completely banning them to prevent market disruption.<\/p>\n

It\u2019s worth noting that the FSC chairman, Lee Eun-won, recently affirmed<\/a> that the regulatory agency will \u201cfundamentally prohibit the payment of interest on stablecoins as a principle,\u201d adopting the same principle as the US framework, the GENIUS Act, which prohibits interest payments on the holding or use of payment-purpose stablecoins.<\/p>\n

Following the Wednesday delay, a member of the National Policy Committee from the Democratic Party affirmed that, \u201cfor now, it looks difficult to narrow the differences between the FSC and the BOK.\u201d<\/p>\n

\u201cIf the government bill continues not to be submitted, the deliberation process could be prolonged, so we should at least review the bills introduced by lawmakers first,\u201d they concluded.<\/p>\n

\"Bitcoin,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

South Korea\u2019s government has reportedly missed the deadline to submit its highly anticipated stablecoin legislation, risking a delay of the second phase of the country\u2019s regulatory efforts to align with global standards and foster innovation. FSC Misses Key Deadline Amid BOK Disagreement On Wednesday, local media outlets affirmed that the South Korean government failed to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-62974","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/62974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=62974"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/62974\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=62974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=62974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=62974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}