South Korea requires banks to hold more than half to issue stablecoins, lawmakers oppose and plan to propose alternatives

The Financial Services Commission (FSC) of South Korea has changed its stance and supports the Bank of Korea (BOK)'s proposal for stablecoin regulation. The proposal requires that stablecoins be issued by a bank-led consortium, with banks collectively holding more than 50% to maintain control. Although technology companies can become the single largest shareholder, their shareholding must still be below the overall bank shareholding.

However, this plan faces opposition in the National Assembly from lawmakers such as those from the ruling Democratic Party, highlighting the divisions between the ruling party, financial regulators, and the central bank. The proposal also imposes stricter requirements on cryptocurrency exchanges, including higher IT stability standards, mandatory compensation for hacker losses, and fines of up to 10% of annual revenue.