South Korea’s push to finalize a national stablecoin framework has stalled this week after regulators clashed over whether domestic banks should be allowed to issue won-based tokens, according to reporting from Korea JoongAng Daily. The dispute surfaced as policymakers reviewed proposals tied to the Bank of Korea and the Financial Services Commission.
Officials familiar with the process said the disagreement centers on how much control commercial banks should have in issuing or backing stablecoins. The Bank of Korea has argued that banks must be able to participate to ensure liquidity and monetary stability, while other regulators fear that allowing them in the market could blur oversight lines and introduce new risks. With no consensus in place, expectations for passing the legislation this year have faded, leaving fintech firms and blockchain developers uncertain about upcoming compliance requirements.
Authorities have not provided a new timeline for progress. Lawmakers are expected to revisit the issue during upcoming committee sessions, though industry groups warn that prolonged delays could push stablecoin innovation offshore. Observers will be watching for updated guidance from the Bank of Korea and financial regulators as negotiations continue.
Source: Korea JoongAng Daily.
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