South Korea adjusts stablecoin regulation direction, bank control becomes key

【Blockchain Rhythm】Major Shift in South Korea’s Stablecoin Policy by Financial Regulators

On January 8th, news broke that the Korea Financial Services Commission (FSC) has changed its previous stance and now supports the plan proposed by the Bank of Korea (BOK)—setting stricter thresholds for stablecoin issuance. In simple terms, future stablecoins can only be issued by bank-led consortia, and banks must hold the majority stake.

The specific rules are as follows: consortia can issue stablecoins, but banks must maintain over 50% ownership control. Technology companies can participate, but their shareholding must be lower than the overall holdings of the banks. In other words, traditional financial institutions will have absolute dominance here.

This policy adjustment actually reflects disagreements among the ruling party, financial regulators, and the central bank. Legislators have concerns about banks issuing Korean won stablecoins, but ultimately, a compromise was reached.

For crypto trading platforms, the days may become more difficult. The new regulations require platforms to improve IT system stability standards, mandate compensation for user losses caused by hacking, and set fines up to 10% of annual revenue. All these requirements are costly.

Additionally, stablecoin issuers need to prepare at least 500 million Korean won (about $370,000 USD) in paid-in capital. Regulators also clarified that there is room for adjustment—this capital requirement may continue to increase as the market develops. This means the barriers to entry in the industry are continuously rising.