Share
South Korea’s ruling Democratic Party issued a decisive ultimatum on December 1, 2025: the Financial Services Commission (FSC) and the Bank of Korea (BoK) must deliver a complete stablecoin bill draft by December 10. If they miss the deadline, lawmakers will bypass them entirely and introduce their own legislation in the National Assembly.
The move centers on creating a regulated framework for Korean won-pegged stablecoins while protecting monetary sovereignty from dollar-denominated dominance.
President Lee Jae-myung, who took office in March 2025, has made local-currency stablecoins a cornerstone of his digital-asset agenda. The proposed bill falls under Phase 2 of the Digital Asset Basic Act and would impose strict issuance rules, 1:1 reserve requirements, a minimum capital of 5 billion won ($3.6 million), and mandatory internal controls.
Discussions intensified after a closed-door meeting on December 1 between senior Democratic Party members and the FSC, though no final consensus emerged on the issuer model.
LATEST: 🇰🇷 South Korean lawmakers have set a Dec. 10 deadline for financial regulators to submit a draft stablecoin bill, warning they will legislate independently if the deadline is missed. pic.twitter.com/B374pMH2vP
— CoinMarketCap (@CoinMarketCap) December 2, 2025
Democratic Party lawmaker Kang Jun-hyeon, who is also the secretary of the National Assembly’s Financial Services Committee, drew the line clearly: “If the government plan doesn’t arrive by this deadline, I’ll push it forward through a legislator-initiated bill at the committee secretary level.”
The Bank of Korea advocates a consortium structure where licensed banks and the central bank hold majority equity (at least 51%) in any issuer, leveraging existing AML infrastructure. The FSC, however, favors broader participation from fintech firms to accelerate innovation. Lawmakers have signaled they will push the bill for plenary review as early as January 2026 regardless of which model prevails.
South Korea’s sprint mirrors a global wave of stablecoin regulation now reaching maturity. The European Union’s MiCA framework was fully applied to stablecoins on December 30, 2024, enforcing strict liquidity and redemption rules.
In the United States, the GENIUS Act, signed into law in July 2025, authorizes the Federal Deposit Insurance Corporation (FDIC) to charter payment stablecoin issuers. Acting FDIC Chair Travis Hill confirmed on December 2, 2025, that proposed rules will be published before year-end.
Looking closely, Asia’s stablecoin frameworks now form a cohesive regulatory bloc. Hong Kong’s Stablecoins Ordinance took effect on August 1, 2025, requiring HKMA licenses, 1:1 high-liquidity reserves, and prompt redemption for fiat-referenced stablecoins. Japan restricts issuance to banks and trust companies under its 2023 Payment Services Act amendments, with 2025 relaxations allowing up to 50% of reserves to be held in short-term government securities. Singapore’s 2023 MAS framework mandates 100% liquid reserves and S$1 million base capital for single-currency stablecoins, granting the “MAS-regulated” label only to compliant issuers.
Asia has the highest adoption rate of stablecoins worldwide.
At Circle Forum Singapore, we explored how APAC is embracing onchain finance, with $2.4 trillion of activity from June 2024 to June 2025.
Yam Ki Chan, VP for APAC and Managing Director for Circle Singapore, expands on… pic.twitter.com/Llj6zMEM1N
— Circle (@circle) October 2, 2025
Pilots like Wavebridge’s KRW token on Solana, launched October 2025, deliver fast settlements and clear reserve proof, slashing fees from 6-7% to under 0.5% while offering 4-5% yields on reserves like Treasury bills. Japan’s JPYC, a 1:1 yen-backed coin since January 2021, holds nearly 100% domestic market share with over 30 billion yen issued. Singapore’s BLOOM initiative, started in October 2025, tests multi-currency settlements with tokenized deposits and stablecoins. Hong Kong licensed RD InnoTech, Jingdong Coinlink, and the Standard Chartered-Animoca JV in May 2025 for HKD variants.
Asia’s edge lies in high mobile use, skilled users, and vast remittance needs – $350 billion annually across APAC. Chainalysis data shows KRW stablecoin purchases hit $64 billion in the year to June 2025, outpacing other regional fiat pairs.
Once South Korea’s rules activate in early 2026, APAC could host four major fiat-backed stables under clear oversight, a barrier any offshore tokens like USDT must navigate via partnerships. These could potentially claim up to 20% of regional remittances by mid-2027, powering trade, payroll, and gaming with low-risk yields.
South Korea’s deadline signals Asia’s shift – from following Western models to crafting programmable finance on its terms.
Share
