Rival Stablecoin Bills Intensify South Korea Crypto Debate

South Korea's ruling Democratic Party and opposition People Power Party have each introduced competing bills to regulate stablecoins, sparking a legislative contest over the future of crypto oversight. Both proposals require stablecoin issuers to maintain at least 5 billion won in capital and designate the Financial Services Commission as the primary regulator with broad oversight and emergency powers. The Democratic Party’s bill bans interest payments on stablecoins to avoid market disruption, whereas the opposition's bill allows such payments to encourage innovation. Issuers must be financial institutions or joint stock companies, and foreign firms may participate if they establish a local presence. This legislative rivalry underscores South Korea's efforts to balance regulatory oversight with innovation as it aims for leadership in the global digital asset market. The debate unfolds amid regional developments, including China's push to internationalize the yuan and the global implications of US-backed stablecoins.