South Korea FSC Delays Won Stablecoin Bill as Inter‑Agency Talks Continue
South Korea’s Financial Services Commission (FSC) missed a December 10 deadline to submit a regulatory bill for won‑pegged stablecoins after deciding to extend inter‑agency consultations rather than publish a draft hastily. The FSC says it needs more time to coordinate positions with the Bank of Korea and other relevant bodies and prefers to release the proposal when formally filed to the National Assembly. Earlier reporting highlighted substantive disputes — notably the central bank’s push for a bank‑led issuance model (a consortium holding at least 51% of an issuer) versus the FSC’s desire to include tech and non‑bank firms — and questions over whether interest can be paid on payment‑purpose stablecoins. The delay leaves timing and content uncertain: no resubmission timeline, bill text, or legislative impact has been disclosed. For crypto traders, regulatory uncertainty could prolong market fragmentation and custody/compliance ambiguity for won‑pegged stablecoins, potentially affecting liquidity, on‑chain flows and exchange listings. Traders should watch for renewed FSC–BOK negotiations, the FSC’s published draft and any rival legislative drafts advancing in the National Assembly to gauge when clearer rules — and their market effects — will arrive.
Neutral
The delay in submitting a won‑pegged stablecoin bill creates regulatory uncertainty but does not immediately alter the fundamentals of existing stablecoins. Short term: uncertainty may reduce liquidity or slow listings for prospective won‑stablecoins and prompt conservative custody/compliance choices by exchanges and market makers, producing localized volatility or reduced on‑chain activity tied to won‑pegged products. Long term: the outcome of FSC–BOK negotiations will determine the market structure — a bank‑centric model could favor incumbent banks and custodians, while a more open framework would enable broader tech and DeFi participation. Clear regulation should ultimately strengthen market confidence and onboarding, but the current postponement merely delays that benefit. Given these offsetting effects — temporary operational friction vs. eventual regulatory clarity — the net price impact on won‑pegged stablecoins and related tokens is likely neutral until substantive text and timelines emerge.