South Korea's ruling party, FSC agree to expand stablecoin issuer eligibility

South Korea's ruling Democratic Party and the Financial Services Commission (FSC) have agreed to diversify the range of entities eligible to issue stablecoins, moving away from a purely bank-centric model, News1 reported. The FSC had previously considered a plan, reflecting the Bank of Korea's opinion, that would have required banks to hold a controlling stake of over 50% in any stablecoin-issuing consortium. However, the Democratic Party and the local crypto industry opposed the measure, raising concerns that it would stifle innovation. The two sides have now reportedly reached a compromise to expand the types of permitted issuers. This plan is not yet final, and further consultations between the government and the ruling party are expected.