South Korea requires banks to hold a majority stake to issue stablecoins; lawmakers oppose and propose alternative plans

According to ChainCatcher, the Financial Services Commission (FSC) of South Korea has shifted its stance and now supports the Bank of Korea's (BOK) proposal for stablecoin regulation. The proposal requires that stablecoins must be issued by bank-led consortia, with banks collectively holding more than 50% of the shares to maintain control. Although technology companies can become the single largest shareholder, their shareholding must still be lower than the total shareholding of the banks.

However, this plan faces opposition in the National Assembly from lawmakers including those of the ruling Democratic Party, highlighting divisions between the ruling party, financial regulators, and the central bank. The proposal also imposes stricter requirements on cryptocurrency exchanges, including higher IT stability standards, mandatory compensation for hacker losses, and fines of up to 10% of annual revenue.