South Korea requires banks to hold more than 50% ownership to issue stablecoins; legislators oppose this and plan to propose an alternative solution.

ChainCatcher Message, the Korea Financial Services Commission (FSC) has shifted its stance to support the Bank of Korea’s (BOK) stablecoin regulation proposal. The plan requires stablecoins to be issued by a bank-led consortium, with the bank’s combined shareholding exceeding 50% to maintain control. Although technology companies can become the single largest shareholders, their shareholding ratio must still be below the overall bank holdings.

However, this plan faces opposition in the National Assembly from legislators such as the ruling Democratic Party, highlighting disagreements 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 up to 10% of annual revenue.