South Korea Delays Won Stablecoin Bill Amid FSC vs Central Bank Dispute

South Korea has postponed its proposed legislation for won-pegged stablecoins due to ongoing conflicts between the Financial Services Commission (FSC) and the Bank of Korea (BOK). 

The FSC missed the December 10, 2025, deadline set by the ruling party to submit the regulatory framework. This delay highlights deeper regulatory challenges in one of Asia's leading crypto markets.

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The Missed Deadline and Reasons for Delay

The FSC failed to deliver the won-stablecoin bill by the government-imposed December 10 deadline. Officials explained that additional coordination with related agencies was necessary. This postponement stems from unresolved disputes, pushing back the expected rollout potentially into 2026.

Sources indicate the bill forms part of the second phase of the Virtual Asset User Protection Act, aimed at governing stablecoin issuance and distribution.

Key Points of Contention

The primary dispute centers on oversight authority. The BOK advocates for:

• Veto rights over stablecoin issuers

• Mandatory majority bank ownership (at least 51%) in issuing consortia

• Stronger controls to protect monetary policy

In contrast, the FSC views stablecoins as virtual assets under financial regulation and resists expanding BOK powers, favoring broader participation from fintech and tech firms to encourage innovation.

Read Also: South Korea’s Stablecoin Push: Will Regulation Spark a Crypto Boom?

Concerns Over Big Tech and Systemic Risks

The BOK worries that non-bank issuers, especially big tech companies, could create monopoly risks or undermine monetary stability by functioning like deposit-taking entities. The FSC argues that strict bank dominance might stifle competition and limit market growth.

Importance of Won-Pegged Stablecoins for South Korea

South Korea boasts one of the world's most vibrant crypto ecosystems, with millions of active retail investors and high trading volumes. A regulated won-backed stablecoin could offer significant benefits:

• Faster and cheaper domestic payments

• Reduced dependence on USD-dominated tokens like USDT and USDC

• Better integration with local exchanges and fintech services

• Enhanced options for digital asset transactions

Without clear rules, private initiatives remain halted, delaying potential economic advantages.

Read Also: South Korea New Bill: Can Companies Make Their Own Stablecoins Now?

Broader Context in Asia's Crypto Regulation

While neighbors like Japan and Hong Kong have progressed with clear digital asset frameworks, South Korea faces internal bureaucratic hurdles. 

This situation reflects global debates on stablecoin governance—whether central banks, financial regulators, or hybrid models should lead. The delay underscores tensions between fostering innovation and managing financial risks in a fragmented regional landscape.

Outlook and Potential Implications

Experts anticipate extended talks between the FSC and BOK, possibly resulting in stricter rules if the central bank prevails. Private sector stablecoin development may slow in the short term, with renewed focus expected ahead of political developments.

The stablecoin market in South Korea remains uncertain until a consensus emerges, potentially shifting to lawmaker-led bills if delays persist.

Read Also: Is the South Korea Banking Sector In Trouble? A Look at Crypto Regulation

Conclusion

The postponement of South Korea's won stablecoin bill due to the FSC-BOK dispute illustrates the complexities of regulating emerging digital assets. Resolving these issues is crucial for balancing innovation, user protection, and monetary stability.

As the crypto landscape evolves, staying informed and using reliable platforms is essential. Consider exploring reputable exchanges like Bitrue for seamless crypto trading and stablecoin access.

FAQ

Why was South Korea’s WON stablecoin bill delayed?

The FSC missed the deadline due to unresolved authority disputes with the Bank of Korea and ongoing inter-agency coordination.

Who wants control over won-pegged stablecoin issuance?

The Bank of Korea is pushing for veto power and majority bank ownership to protect monetary stability.

How does the FSC classify stablecoins technically?

The FSC treats stablecoins as virtual assets under financial regulation, not as central bank instruments.

Why is big tech involvement a concern for regulators?

The BOK fears non-bank issuers could act like shadow banks, creating systemic and monopoly risks.

What’s the impact of the delay on South Korea’s crypto market?

Won stablecoin launches are stalled, slowing payment innovation and keeping reliance on USD-based stablecoins.

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