Highlights: South Korea moves to pass the Digital Asset Act after parties agree on a bank-led stablecoin model. Lawmakers have set December 10 as the final deadline for the government proposal. The new act targets financial security, innovation, and market competitiveness. South Korea is racing toward completion of its Digital Asset Act by January 2026. Financial officials and lawmakers met on December 1 to settle the lingering disputes. The fundamental issue of the discussion is the paradigm of issuance of Korean won-based stablecoins. The parties came up with a tentative agreement after several months of stalemate. Consortium Model Gains Approval In the closed-door meeting, participants settled on adopting a consortium model. Under this framework, banks should own at least 51% of the equity of stablecoin issuers. This model represents a compromise between the Financial Services Commission (FSC) and the Bank of Korea. Although banks maintain stability in monetary aspects, fintech companies will lead to innovation because of minority stakeholders. The agreement was confirmed by the Democratic Party lawmaker Kang Joon-hyun. He stressed that the model balances the stability needs of the Bank of Korea and the push of innovation by tech industries. The new structure provides the basis of a “Korean-style stablecoin.” South Korea's lawmakers are pushing the government to submit a final draft of its stablecoin bill by December 10th. This aggressive deadline aims to break the legislative deadlock and cement a regulated framework for the nation’s digital asset market. #SouthKorea #Stablecoins… pic.twitter.com/eDY3dSGueC — Conor Kenny (@conorfkenny) December 1, 2025 Moreover, the officials talked about the fine-tuning of the bank participation levels. At least 50% bank ownership was proposed by Kang’s team. The Bank of Korea had cautioned that stablecoins may pose a risk to the monetary system. However, the FSC suggested broader access to non-bank players. Although FSC later said that no final decision was taken, the trend is now inclined towards the consortium route. The proposal is currently in the internal review process, but it is moving towards a formal draft. December 10 Deadline Fuels Legislative Momentum The lawmakers imposed a deadline of December 10 on the government to present its proposal. In case the FSC fails to meet, Kang warned, lawmakers would bring up their own version. The aim is to have the bill passed during the January extraordinary session of the National Assembly. Kang emphasized the urgency and cited the possible disruption in the market in case no regulation is provided. Some legislators had already submitted draft bills, but agreements between the ruling and opposition parties stalled progress. However, the new consensus changes that situation. South Korea’s efforts to pass the Digital Asset Act align with global efforts by the U.S., Japan, and the EU to apply regulation on stablecoins. Delays had also fueled concerns about market irrelevance, with global players such as Tether and USDC dominating the market. The new law in Korea is based on the Digital Asset Basic Act introduced this year. That law established licensing requirements, reserve regulations, and compliance responsibilities of crypto companies. The new bill aims to close the regulatory loopholes, particularly in the case of stablecoins. JUST IN South Korea introduces a new crypto bill proposing a licensing regime for stablecoin issuers. pic.twitter.com/Me2ETStltg — Moby Media (@mobymedia) June 10, 2025 Additional Reforms Enhance Market Stability Beyond the focus on the stablecoins, lawmakers plan to make broader financial reforms. The Electronic Financial Transactions Act is going to be revised. This follows significant hacking attacks at financial institutions. The new version furthermore proposes stronger penalties and stricter supervision. South Korea will also enhance the transparency of capital markets. Reform proposals, such as compulsory tender offers in certain corporate measures, have been planned. Moreover, they will also demand improved share allocation in favor of general investors. These measures are planned to strengthen confidence in the financial system and enhance local crypto markets. According to officials, alignment with the international trends of regulation is important to enhance competitiveness. As the Digital Asset Act gains momentum, the Financial Intelligence Unit (FIU) is preparing sequential penalties on exchanges such as Korbit, Gopax, Bithumb, and Coinone due to AML and identity verification violations. eToro Platform Best Crypto Exchange Over 90 top cryptos to trade Regulated by top-tier entities User-friendly trading app 30+ million users 9.9 Visit eToro eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Highlights: South Korea moves to pass the Digital Asset Act after parties agree on a bank-led stablecoin model. Lawmakers have set December 10 as the final deadline for the government proposal. The new act targets financial security, innovation, and market competitiveness. South Korea is racing toward completion of its Digital Asset Act by January 2026. Financial officials and lawmakers met on December 1 to settle the lingering disputes. The fundamental issue of the discussion is the paradigm of issuance of Korean won-based stablecoins. The parties came up with a tentative agreement after several months of stalemate. Consortium Model Gains Approval In the closed-door meeting, participants settled on adopting a consortium model. Under this framework, banks should own at least 51% of the equity of stablecoin issuers. This model represents a compromise between the Financial Services Commission (FSC) and the Bank of Korea. Although banks maintain stability in monetary aspects, fintech companies will lead to innovation because of minority stakeholders. The agreement was confirmed by the Democratic Party lawmaker Kang Joon-hyun. He stressed that the model balances the stability needs of the Bank of Korea and the push of innovation by tech industries. The new structure provides the basis of a “Korean-style stablecoin.” South Korea's lawmakers are pushing the government to submit a final draft of its stablecoin bill by December 10th. This aggressive deadline aims to break the legislative deadlock and cement a regulated framework for the nation’s digital asset market. #SouthKorea #Stablecoins… pic.twitter.com/eDY3dSGueC — Conor Kenny (@conorfkenny) December 1, 2025 Moreover, the officials talked about the fine-tuning of the bank participation levels. At least 50% bank ownership was proposed by Kang’s team. The Bank of Korea had cautioned that stablecoins may pose a risk to the monetary system. However, the FSC suggested broader access to non-bank players. Although FSC later said that no final decision was taken, the trend is now inclined towards the consortium route. The proposal is currently in the internal review process, but it is moving towards a formal draft. December 10 Deadline Fuels Legislative Momentum The lawmakers imposed a deadline of December 10 on the government to present its proposal. In case the FSC fails to meet, Kang warned, lawmakers would bring up their own version. The aim is to have the bill passed during the January extraordinary session of the National Assembly. Kang emphasized the urgency and cited the possible disruption in the market in case no regulation is provided. Some legislators had already submitted draft bills, but agreements between the ruling and opposition parties stalled progress. However, the new consensus changes that situation. South Korea’s efforts to pass the Digital Asset Act align with global efforts by the U.S., Japan, and the EU to apply regulation on stablecoins. Delays had also fueled concerns about market irrelevance, with global players such as Tether and USDC dominating the market. The new law in Korea is based on the Digital Asset Basic Act introduced this year. That law established licensing requirements, reserve regulations, and compliance responsibilities of crypto companies. The new bill aims to close the regulatory loopholes, particularly in the case of stablecoins. JUST IN South Korea introduces a new crypto bill proposing a licensing regime for stablecoin issuers. pic.twitter.com/Me2ETStltg — Moby Media (@mobymedia) June 10, 2025 Additional Reforms Enhance Market Stability Beyond the focus on the stablecoins, lawmakers plan to make broader financial reforms. The Electronic Financial Transactions Act is going to be revised. This follows significant hacking attacks at financial institutions. The new version furthermore proposes stronger penalties and stricter supervision. South Korea will also enhance the transparency of capital markets. Reform proposals, such as compulsory tender offers in certain corporate measures, have been planned. Moreover, they will also demand improved share allocation in favor of general investors. These measures are planned to strengthen confidence in the financial system and enhance local crypto markets. According to officials, alignment with the international trends of regulation is important to enhance competitiveness. As the Digital Asset Act gains momentum, the Financial Intelligence Unit (FIU) is preparing sequential penalties on exchanges such as Korbit, Gopax, Bithumb, and Coinone due to AML and identity verification violations. eToro Platform Best Crypto Exchange Over 90 top cryptos to trade Regulated by top-tier entities User-friendly trading app 30+ million users 9.9 Visit eToro eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.