Catenaa, Sunday, August 31, 2025-Deliberations over South Korea’s stablecoin legislation have slowed to a standstill as lawmakers, regulators, and the Bank of Korea struggle to reach consensus on issuance rules.
Four draft bills are currently stuck in committee, delaying the country’s plans to institutionalize KRW-pegged digital currencies.
The deadlock centers on whether fintech and IT firms should be allowed to issue stablecoins or if issuance should be limited to domestic commercial banks.
Conservative voices at the BOK and government authorities fear granting tech firms issuance rights could create private currencies controlled by large conglomerates or internet giants such as Naver and Kakao.
Progressive proposals would permit startups with minimum equity of 500 million won ($360,000) to participate, while more restrictive bills require at least 5 billion won ($3.6 million).
The stalled process is split between the National Assembly’s Political Affairs Committee and Strategy and Finance Committee, adding further delays. Industry insiders express frustration, noting that other countries, including Japan, Germany, and China, are moving faster to authorize stablecoin programs in response to U.S. regulatory initiatives like the GENIUS Act.
South Korea risks falling behind as global peers advance digital currency frameworks. Recent talks between Circle’s CEO Heath Tarbert and BOK officials, along with meetings with top domestic banks, underscore ongoing efforts to coordinate with international stakeholders.
Observers say a swift resolution is critical to maintaining competitiveness in Asia’s growing digital asset ecosystem.
