FSC misses deadline for won-stablecoin bill
South Korea’s Financial Services Commission has failed to submit its proposed regulatory framework for a won-denominated stablecoin by the government’s December 10 deadline. Officials stated that further coordination with other agencies is required before the legislation can move forward.
The delay signals deepening disagreements at the national level as policymakers attempt to define how a Korean stablecoin should be issued, governed, and supervised.
Conflict with the Bank of Korea over regulatory authority
The main point of tension lies between the FSC and the Bank of Korea.
The central bank is pushing for:
• explicit veto power over any stablecoin issuer
• strict limitations on big tech companies participating in issuance
• a stronger monetary oversight role similar to CBDC governance
The FSC, meanwhile, has resisted ceding authority, arguing that stablecoins fall under financial supervision rather than monetary policy.
This unresolved conflict has stalled the bill and left the future legal framework uncertain.
Why the stablecoin bill matters for South Korea
South Korea is one of Asia’s most active crypto markets, with millions of retail participants and a rapidly expanding digital payments ecosystem. A won-backed stablecoin could:
• streamline domestic transfers
• reduce reliance on USD-based stablecoins
• integrate cleanly with compliant exchanges
• create new rails for digital asset settlements
But without clear legislation, private sector initiatives remain restricted, and institutional involvement is effectively paused.
Macro insight: Asia’s digital currency landscape remains fragmented
While Japan and Hong Kong have advanced digital asset policies, South Korea continues to struggle with inter-agency power dynamics.
This delay suggests broader challenges:
• unclear division between financial and monetary oversight
• political concerns about allowing big tech to control payment infrastructure
• tension between innovation and systemic risk management
South Korea’s situation mirrors global uncertainty around who should govern fiat-backed stablecoins: financial regulators, central banks, or a hybrid model.
BTCUSA Outlook
The regulatory delay is meaningful. A won-stablecoin could have accelerated on-chain adoption across Korean exchanges and fintech platforms, but progress now depends on resolving bureaucratic disputes.
We expect:
• prolonged negotiations between the FSC and Bank of Korea
• stricter oversight if the central bank gains influence
• slower private stablecoin innovation in the near term
• renewed political attention as elections approach
Until the framework is finalized, South Korea’s stablecoin landscape will remain in limbo.
