South Korea advances strict regulation of stablecoins: detailed explanation of bank control requirements and new exchange regulations

TokenomicsTrapper · 2026-01-08T09:12:13+00:00

The financial regulatory landscape in South Korea has changed. The Financial Services Commission supports the central bank's stablecoin regulatory framework, requiring banks to take the lead with over 50% ownership. However, the proposal faced resistance in Congress, with ruling party lawmakers expressing reservations, reflecting disagreements between political parties and regulatory authorities. Additionally, crypto exchanges will face stricter regulatory measures, including increased IT stability requirements and higher penalty caps.

TokenomicsTrapper

2026-01-08 09:12:13

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[BitPush] Changes in South Korea’s Financial Regulatory Landscape. The Financial Services Commission has recently shifted to support the central bank’s regulatory framework for stablecoins. This plan has clear requirements for the structure of stablecoin issuance—it must be operated by a consortium led by banks, with bank equity holdings exceeding 50% to maintain control. Interestingly, tech companies can become the single largest shareholders, but overall ownership still needs to be dominated by banks.

However, this has hit a snag in the National Assembly. Members of the ruling Democratic Party are cautious and have directly opposed the proposal, reflecting significant differences in opinions among the ruling party, financial regulators, and the central bank. In addition to stablecoin regulations, relevant authorities also plan to tighten restrictions on crypto exchanges—including increasing requirements for IT system stability, requiring exchanges to compensate for losses caused by hacking, and setting a maximum fine limit of 10% of annual revenue. These measures collectively point toward a trend of stricter industry regulation.

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AirdropHunter

· 12h ago

Here comes another round of cutting leeks; the bank's knife is getting faster and faster.

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CrossChainMessenger

· 22h ago

The banks want to monopolize stablecoins again? This trick has been played out long ago; tech companies are just workers. Exchanges compensating hackers for losses... Who can really stand that? Korea is really trying to crush exchanges completely. It's also quite normal for Congress to oppose it; honestly, this framework is too unfriendly to retail investors.

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GamefiHarvester

· 01-09 15:53

Bank controls 50%? This is to fully integrate stablecoins into the traditional financial system. No matter how powerful tech companies are, it's useless. I think it's quite normal for Congress to oppose this; after all, doing so still means the central bank has the final say.

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LadderToolGuy

· 01-09 14:23

The banks want to monopolize stablecoins again? Korea's move is ruthless, tech companies can't compete.

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LiquidityWhisperer

· 01-08 09:41

Coming back to Korea with that approach again? Banks must hold 50%+ equity... Isn't this just a disguised form of financialized stablecoin? --- The opposition in Congress is somewhat interesting; the government is starting to have internal conflicts. --- Compensating hackers' losses on exchanges? How much reserve would that require? Trading volume might be cut in half now. --- I really don't understand; tech giants are the largest shareholders but have no say. What's the point of holding that position... --- Korean regulators are becoming increasingly strict, but it's still manageable; we'll see how the US acts. --- A 10% fine cap doesn't sound like much, but for small exchanges, it's already a death sentence.

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4am_degen

· 01-08 09:36

It's the same old trick that the banking elites want to monopolize; this move in Korea is truly outrageous.

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DataOnlooker

· 01-08 09:35

The banks are determined to crush stablecoins, and they are really good at this trick...

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GrayscaleArbitrageur

· 01-08 09:35

Korea is causing trouble again. Banks insist on holding 50% to be satisfied? Tech companies being forced to be the largest shareholders is just outrageous.

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AirdropHunterKing

· 01-08 09:35

The bank has to get involved, huh? Another 50% equity suppression—I've seen this trick too many times... If Congress opposes it, so be it. Anyway, Korea has been messing around like this all along. When the time comes, a maximum fine of 10%, and the exchange can just pay a little and it's over. In the end, retail investors still end up losing.

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WhaleMistaker