The ruling party of South Korea demands the advancement of the stablecoin bill, requiring commercial banks to hold at least 51% of the shares

The ruling Democratic Party of Korea has requested the government to submit a new bill by December 10 to regulate stablecoins pegged to the Korean won. Kang Jun-hyun, the chair of the party's policy committee, stated that the draft bill will only allow alliances with at least 51% ownership by commercial banks to issue fiat-pegged tokens.

Kang Jun-hyun mentioned that this move aims to coordinate the positions of the Bank of Korea, the Financial Services Commission, and the banking sector. If the government fails to take action, Kang Jun-hyun stated that the National Assembly will lead and advance the legislation. The proposal restricts the issuance of stablecoins to alliances with at least 51% ownership by commercial banks to address long-standing disputes over the qualifications of issuing entities. However, the Financial Services Commission later issued a statement saying, "No final decisions have been made regarding the alliance proposal."