The issuance rights of stablecoins in South Korea have finally been determined: banks must hold 51%.

[Bitpush] Who should issue South Korea's stablecoin? This matter finally has some clarity.

The South Korean government and parliament are promoting the “Basic Law on Digital Assets,” with the core issue being who is granted the issuance rights for stablecoins. It has now been basically determined that only a consortium with more than 51% of shares held by banks can issue them. The ruling party's digital asset working group also recognizes this approach.

Previously, all parties argued fiercely - the Bank of Korea insisted that it must be within the banking system, holding control firmly in the hands of traditional finance; however, some lawmakers felt this was too conservative and advocated for leaving a path for fintech companies and blockchain enterprises. It now seems that the compromise solution has won out: allowing banks to be the major shareholders while permitting consortium operations.

The government draft is to be submitted by the 10th of this month, with the goal of starting discussions within the year and completing legislation by January next year. The action is quite fast, after all, no one wants to fall behind in the stablecoin market.