Why South Korea Is Struggling to Decide Who Can Issue Stablecoins

Why It Matters

The decision will shape Korea’s domestic stablecoin ecosystem, influencing market competition, financial‑stability oversight, and the country’s ability to retain crypto liquidity within regulated channels.

Key Takeaways

• Crypto bill stalled over stablecoin issuer rules
• BoK pushes bank‑led consortia with 51% ownership
• FSC fears reduced competition and innovation
• Toss plans won‑backed stablecoin pending framework
• $64 bn won‑stablecoin purchases in 12 months

Pulse Analysis

South Korea has become one of the world’s most active crypto markets, with retail traders moving billions into stablecoins to access offshore liquidity. In the past year, won‑denominated stablecoin purchases topped $64 billion, underscoring the demand for a domestic, fiat‑backed token. Regulators see this surge as a double‑edged sword: it offers a pathway to formalize crypto payments, yet it also threatens to strain foreign‑exchange controls and monetary policy if left unchecked.

At the heart of the legislative deadlock is the Bank of Korea’s “51 % rule,” which would require banks to hold a majority stake in any stablecoin issuer. The central bank argues that such ownership ensures prudential discipline, capital adequacy, and rapid redemption—key safeguards against a shadow‑bank crisis. Conversely, the Financial Services Commission and several lawmakers contend that mandating bank control stifles fintech innovation, limits consumer choice, and could push users toward foreign stablecoins, eroding regulatory visibility.

Looking ahead to 2026, the market is poised for rapid change. Major banks are preparing consortium structures, while fintech players like Toss are ready to launch a won‑backed token once licensing criteria are clarified. Possible regulatory paths include a staged licensing model, an open‑licensing regime with heightened systemic requirements, or a hybrid where bank‑led consortia are optional. The outcome will determine whether South Korea can cultivate a homegrown stablecoin industry or remain dependent on external, dollar‑pegged alternatives.