In accordance with TechFlow, on December 14, the South Korean Financial Services Commission (FSC) failed to submit a regulatory bill for won-backed stablecoins by the government's December 10 deadline. The ruling Democratic Party had required agencies to submit related legislation by the deadline, with a commitment to introduce the bill by the end of January 2026 to fulfill President Lee Jae-myung's campaign promise. An FSC spokesperson stated, 'We were unable to submit the proposal within the requested timeframe, and the FSC needs more time to coordinate positions with relevant agencies.' Currently, the Bank of Korea (BOK) and FSC have significant disagreements over stablecoin regulation. The BOK is concerned that allowing large tech companies to issue stablecoins could undermine its monetary policy control and seeks veto power and regulatory authority over stablecoin issuance. The FSC, however, argues that its own approval process is sufficient, noting that in the EU and Japan, fintech companies are the primary stablecoin issuers, with no global precedent for bank-led issuance.
South Korea's FSC Misses Deadline for Won-Backed Stablecoin Regulatory Bill
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Summary
South Korea’s FSC missed the December 10 deadline to submit a stablecoin regulation bill, according to TechFlow. The Democratic Party had set the deadline to push for a January 2026 introduction, aligning with President Lee Jae-myung’s campaign pledge. An FSC rep said coordination delays caused the delay. The Bank of Korea wants control over stablecoin issuance to prevent risks like Countering the Financing of Terrorism and to maintain monetary policy. The FSC argues its approval is enough, citing EU and Japan models.
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