December 10 Ultimatum: South Korean Lawmakers Threaten to Bypass Regulators on Stablecoin Law

South Korean lawmakers have issued an ultimatum to financial regulators. The ruling party demands a draft stablecoin bill by December 10, threatening to push through their own legislation if regulators fail to meet the deadline. Democratic Party lawmaker Kang Joon-hyun made the position clear. If the government fails to deliver, the Political Affairs Committee will draft its own proposal. The legislation could reach the National Assembly floor during an extraordinary session in January 2026. The Financial Services Commission responded on Monday with measured language. No final decisions have been made regarding stablecoin issuance structures, the regulator stated. Officials confirmed that discussions took place during a meeting between the ruling party and the government. Both sides agreed to expedite the drafting process. The FSC explicitly denied earlier reports about banking requirements. Claims that banks must hold at least 51% equity in stablecoin consortiums remain unconfirmed. The regulator emphasized that such details are still under review. Central Bank Clashes With Regulators Over Banking Control The dispute centers on how much control banks should have over stablecoin issuance. The Bank of Korea wants traditional financial institutions at the helm. The central bank argues banks already operate under strict regulatory oversight. Their experience with anti-money laundering protocols makes them ideal candidates. The BOK proposed that banks own majority stakes in any approved stablecoin issuer. This position has drawn criticism from both regulators and industry figures. The Financial Services Commission favors a broader approach. Regulators want multiple types of entities to be eligible to issue stablecoins. This disagreement has stalled progress for months. Late November reports suggested South Korea would end 2025 without a regulatory framework. The December 10 deadline represents a renewed push to break the impasse. Industry Voices Push Back Against Bank-Centric Model Sangmin Seo leads the Kaia DLT Foundation. He told reporters in October that the central bank's reasoning appears flawed. Restricting issuance to bank-led consortiums lacks logical foundation, according to Seo. The foundation chair proposed an alternative path forward. Clear rules for all potential issuers would serve the market better than arbitrary institutional preferences. Seo called on the Bank of Korea to publish specific guidelines. These should outline risk mitigation strategies and trustworthiness criteria for any issuer type.