South Korea is gearing up to introduce a comprehensive regulatory framework for stablecoins, with a bill anticipated to be submitted to the National Assembly by the Financial Services Commission (FSC) in October 2025.
This move marks a significant step in the country's efforts to establish clear and robust rules around the issuance and management of won-backed stablecoins, which are digital tokens pegged to the South Korean won. The forthcoming legislation is expected to be a cornerstone of the second phase of the Virtual Asset User Protection Act, aiming to enhance transparency, liquidity management, and consumer protection in the growing digital asset market.
The initiative is aligned with President Lee Jae-myung’s vision to create a stablecoin ecosystem that reduces South Korea’s reliance on overseas dollar-pegged stablecoins, thus strengthening financial sovereignty and fostering innovation within the domestic crypto space.
The proposed bill will outline crucial regulations including requirements for issuance practices etc, and internal control systems, ensuring that stablecoin providers adhere to stringent operational standards.
This development is also timely, considering that several of South Korea’s major banks are reportedly preparing to launch their own won-backed stablecoin projects. These projects, which may operate on a trust-based or deposit-token model, will depend heavily on the upcoming regulatory framework to provide legal certainty and market confidence.
The bill’s introduction signals South Korea’s ambition to be at the forefront of digital finance innovation in Asia, balancing progressive technology adoption with prudent oversight to safeguard the financial system and consumers alike. With enactment expected by the end of the year, South Korea’s stablecoin framework could become a model for digital currency regulation globally.
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