TLDR
- South Korea’s ruling party sets a December 10 deadline for the government to submit stablecoin legislation.
- Lawmaker Kang Jun-hyeon threatens to initiate the bill if the government fails to act by the deadline.
- The proposed bill would involve a consortium led by banks and financial regulators for stablecoin issuance.
- South Korea’s ruling party aims to ensure regulatory control over the local stablecoin market to protect monetary sovereignty.
- President Lee Jae Myung prioritizes stablecoin development to counter the influence of U.S. dollar-based stablecoins.
South Korea’s ruling party has issued a firm deadline to financial authorities over a delayed stablecoin regulatory proposal. The party has demanded that the government submit its draft legislation on stablecoins by December 10 without further delays. Lawmakers plan to introduce and pass the bill in the current National Assembly session, aiming for approval in January.
South Korea Government Pressured to Submit Bill by Set Deadline
South Korea’s ruling party has directly requested the Financial Services Commission (FSC) to finalize a stablecoin proposal. According to Maeil Economic News, the demand has been described by the party as a final ultimatum to the authorities. “If the plan is not submitted, I will lead a legislator-initiated bill,” said lawmaker Kang Jun-hyeon.
Kang is a ruling party secretary on the National Assembly’s Financial Services Committee. He has confirmed that the committee will move ahead with the legislation process if the government fails to act. The party intends to introduce the bill during the regular session and secure passage in January. South Korea’s ruling party held a closed-door meeting with the FSC on Monday.
The discussion focused on regulatory mechanisms and the scope of stablecoin issuance under the new law. Kang said the authorities are reviewing a consortium model involving banks and financial regulators.
Lawmakers and Regulators Discuss Consortium-Led Stablecoin Model
The proposed plan allows the Bank of Korea, FSC, and banking sector to form a stablecoin issuance consortium. This consortium would operate under government oversight and aim to ensure financial stability and compliance. Discussions have advanced to outline key conditions for this structure.
Officials have discussed a rule requiring banks to hold over 50% of the consortium’s ownership. This proposal aligns with the Bank of Korea’s preference for a bank-led issuance framework. However, the FSC said in a separate statement that no final decision has been reached yet.
South Korea’s ruling party supports a stablecoin model controlled by regulated banks. This reflects growing concerns about protecting monetary sovereignty from foreign-issued stablecoins. The party continues to stress the urgency of developing a domestic stablecoin framework.
Stablecoin Legislation Becomes Priority for Ruling Lawmakers
President Lee Jae Myung made stablecoin development a priority after taking office earlier this year. His administration has focused on strengthening South Korea’s position in the digital currency space. This includes countering the growing influence of U.S. dollar-based stablecoins.
Multiple legislative proposals have circulated in recent months but failed to progress through the National Assembly. South Korea’s ruling party now seeks to accelerate the process with firm deadlines and committee-level action. The party aims to establish legal clarity and regulatory control over the emerging stablecoin sector.
The law would set issuance rules, define participants, and determine the operational model for Korean won-based stablecoins. South Korea’s ruling party is expected to finalize the bill’s content in coordination with financial agencies. Efforts to gain cross-party support are already underway, as shared by officials involved in the committee discussions
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Source: https://blockonomi.com/south-koreas-ruling-party-pushes-government-for-stablecoin-legislation/