South Korea requires banks to hold a majority stake in a company before it can issue a stablecoin; lawmakers oppose this and are proposing alternative solutions.

According to Mars Finance, South Korea's Financial Services Commission (FSC) has shifted its stance to support the Bank of Korea's (BOK) proposal for stablecoin regulation. This proposal requires stablecoins to be issued by a bank-led consortium, with banks holding a combined stake of over 50% to maintain control. While technology companies can be the single largest shareholder, their stake must remain lower than the total bank ownership. However, this plan faces opposition from legislators, including the ruling Democratic Party, highlighting the 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.