South Korea’s stablecoin draft deadline has passed, intensifying the power struggle between the central bank and the Financial Services Commission. The National Assembly plans to take over legislation in January 2026, with markets betting on regulatory directions
(Background: Is Korea’s stablecoin coming? Korea will submit the “Stablecoin Regulation Bill” in October. Four major banks plan to meet with Circle’s CEO next week)
(Additional background: Bank of Korea Governor warns: If Korea introduces stablecoins, it could lead to exchange rate crashes and capital outflows)

Table of Contents

• Missed Deadline, Fractures Emerge
• 51% Control: Banks’ Fortress vs. Tech Channels
• Political Ultimatum, Market Seeks Arbitrage
• The 2026 Showdown and Possible Paths

Lights are on in the office buildings of Yeouido, Seoul, but behind the glass curtain walls, the Bank of Korea (BOK) and the Financial Services Commission (FSC) are battling over the blueprint for stablecoin regulation. The draft, originally due on December 10, missed the deadline in silence, raising concerns that Korea might lose a golden window for global digital asset legislation.

Missed Deadline, Fractures Emerge

As of December 15, the FSC acknowledged that the draft could not be submitted on time, citing “the need for more coordination.” Behind this official statement reflects a fundamental disagreement between the two regulatory bodies over monetary sovereignty and innovation openness. Globally, economies are accelerating their regulatory frameworks—EU’s MiCA regulation has come into effect, and the US Congress is pushing the GENIUS Act to seize the narrative on dollar stablecoins; Korea’s stagnation appears especially glaring.

51% Control: Banks’ Fortress vs. Tech Channels

The conflict boils down to a single number: 51%. The BOK advocates that Korea’s stablecoins must be issued through a “bank-led alliance,” with commercial banks holding at least 51% of shares. The central bank believes that only by locking issuance rights within a highly regulated banking system can it prevent a repeat of the Terra‒LUNA incident in 2022. The FSC counters that this design directly conflicts with the “banks cannot hold more than 15% of non-financial companies” rule in the Banking Act, excluding tech platforms like Kakao Pay and Toss. Members of the ruling party’s digital asset special task force privately criticized:

“The central bank builds security on a mechanism that vetoes innovation, which we cannot accept.”

Political Ultimatum, Market Seeks Arbitrage

Political patience is quickly running out. The ruling party announced an external consultation meeting on December 22. If the two agencies cannot reach consensus, the legislation will be forcibly integrated by the National Assembly in January 2026. The FSC pointed out that the BOK holds veto power under the “Value Stability Committee” structure, which has already caused dissatisfaction in Congress. The regulatory vacuum is also prompting capital to seek alternative routes: tech stocks are rising in anticipation that “Korean-style MiCA” will open doors for startups; banks are forming joint venture funds to reinforce defenses. High-net-worth investors are increasing their virtual asset holdings during this uncertain period, trying to capture price differences before policies are finalized.

2026 Showdown and Possible Paths

The decisive moment is set for January 2026. If the National Assembly ultimately supports the central bank’s closed model, Korea’s stablecoin will become a “safe asset” within high walls, with relative financial stability, but Seoul will likely lose the opportunity to become Asia’s Web3 transit hub. Conversely, if lawmakers open up issuance to non-banks, regulation must establish safeguards comparable to banks in reserves, audits, and anti-money laundering to ensure trust. As the Trump administration relaxed crypto restrictions across the ocean, time has become Korea’s most scarce strategic resource. If deadlock persists, Korea’s stablecoin may only serve as a decorative bonsai, unable to reach the global capital markets. For investors, the policy directions in the coming weeks will influence capital flows, valuations, and Korea’s position in the blockchain landscape.

The lights still reflect on the Han River, but the time left for decision-makers is rapidly shrinking. If stablecoin legislation cannot be finalized by January, the missed opportunity may be more than just a bill—it could be Korea’s ticket in the global crypto race.

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