South Korea's ruling party is demanding the advancement of a stablecoin bill, requiring commercial banks to hold at least 51% of the shares.

According to Odaily, South Korea's ruling Democratic Party has asked the government to submit a new bill by December 10 to regulate stablecoins pegged to the Korean won.

Kang Jun-hyun, convener of the Democratic Party's Political Affairs Committee, stated that the draft bill would only allow consortia with at least 51% commercial bank ownership to issue fiat-backed tokens. Kang Jun-hyun said this move aims to reconcile the positions of the Bank of Korea, the Financial Services Commission, and the banking industry.

If the government fails to act, Kang Jun-hyun stated that Congress will lead and advance legislation. The proposal would restrict stablecoin issuance to consortia with commercial banks holding at least 51% ownership, aiming to resolve long-standing disputes regarding the eligibility of issuers. However, the Financial Services Commission subsequently issued a statement saying, "Nothing has been finalized regarding the consortium proposal." (DLnews)