South Korea’s ruling and opposition parties just broke through a massive stalemate on crypto regulation by agreeing on how Korean won stablecoins should work. They’re aiming to pass a new digital asset act in January after settling the biggest dispute that’s been holding everything up.
The breakthrough came when both sides agreed on a consortium model where banks hold the majority stake in issuing KRW stablecoins, but tech companies can still participate. This satisfies the Bank of Korea’s concerns about monetary stability while letting the private sector actually innovate.
Lawmakers gave the government until December 10th to submit their official proposal. If they miss that deadline, politicians plan to just move forward with their own version anyway. The goal is passing everything during the National Assembly’s January session.
South Korea’s been feeling pressure to get this done because crypto adoption keeps growing, especially among people aged 20 to 50. Officials worry that without proper regulation, Korean companies will fall behind markets like the US, EU, and Japan that already tightened their stablecoin rules this year.
The new legislation builds on a Digital Asset Basic Act passed earlier that set licensing standards. This next piece fills the remaining gaps and creates clearer rules for foreign stablecoins like USDT and USDC dominating the market.
Conclusion
South Korea finally broke its regulatory deadlock, agreeing on a bank-led KRW stablecoin model and pushing to pass a new digital asset act in January to strengthen oversight and competitiveness.
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