South Korea's Financial Services Commission failed to meet a December 10 deadline to propose regulations for stablecoins, with a new bill expected by January 2026. The central bank wants veto power over stablecoin approvals, but the FSC opposes this, complicating the regulatory landscape amid tensions between government and financial authorities.

The Bank of Korea has announced its commitment to actively participate in the development of stablecoin regulations to safeguard monetary and financial stability. This initiative is part of a broader effort to create a regulatory framework addressing the risks associated with stablecoins and their potential impact on monetary policy and traditional financial markets.