Why South Korea Can’t Agree on Who Should Issue Stablecoins

South Korea's proposed Digital Asset Basic Act is delayed because regulators and lawmakers cannot agree on who should be eligible to issue won-backed stablecoins. The Bank of Korea (BOK) advocates for a "banks-first" model, suggesting consortia led by banks with at least 51% ownership, citing concerns over monetary policy and financial stability if private money scales too quickly. Conversely, the Financial Services Commission (FSC) and lawmakers fear a bank-dominated regime will stifle competition and innovation, preferring a licensing approach for various firms. The dispute centers on whether stablecoins are treated as bank-like money or a licensed digital asset product. If Korea fails to establish a trusted domestic option, users will continue relying on foreign stablecoins, reducing regulatory visibility. Potential resolutions being considered for 2026 include staged licensing, open licensing with tiered requirements, or allowing bank-led consortia without making them mandatory.

(Source：Cointelegraph)