The South Korean government is exploring new regulations for stablecoins, aiming to limit their issuance to banking consortiums where banks hold a majority stake. This proposal aligns with the second phase of its digital asset legislation, which focuses on the Basic Act on Digital Assets. The Democratic Party’s special task force has endorsed this approach. Notably, while the Bank of Korea initially advocated for banks leading stablecoin issuance and restricting it to the banking sector, some lawmakers proposed extending it to fintech and blockchain companies. With a submission deadline by December 10th, discussions are expected to commence in the latter part of the year, with legislation aiming for completion in early 2024.