Catenaa, Sunday, December 07, 2025-South Korea’s ruling Democratic Party has issued an ultimatum to financial authorities, urging the submission of a stablecoin regulation proposal by Dec. 10, aiming to pass it into law by January.

The party notified the Financial Services Commission that failure to meet the deadline would prompt a legislator-initiated bill at the committee secretary level, according to lawmaker Kang Jun-hyeon.

The move follows closed-door discussions between committee members and the FSC to advance regulatory groundwork.

Authorities are considering a bank-led consortium model for issuing stablecoins, potentially requiring banks to hold over 50% of consortium shares.

No formal agreement has been reached, but discussions reflect a push to ensure stablecoin issuance is limited to regulated financial institutions.

The initiative aligns with President Lee Jae Myung’s priority to develop a Korean won-backed stablecoin market, aimed at reinforcing monetary sovereignty against US dollar-denominated stablecoins.

Previous legislative efforts have yet to yield significant progress, with several lawmakers proposing regulatory frameworks earlier this year.

The ruling party’s aggressive timeline underscores the government’s intent to formalize a domestic stablecoin ecosystem, while balancing regulatory oversight and central bank involvement.