Regulation Incoming
The Financial Services Commission (FSC) will present a bill this October under the Virtual Asset User Protection Act.
The framework will cover issuance rules, collateral requirements, and internal controls for stablecoins.
Lawmakers see urgency: with nearly all stablecoins pegged to the U.S. dollar, Korea risks over-dependence. A won-pegged coin could give the nation financial independence and boost domestic fintech innovation.
Momentum Building
President Lee Jae-myung pledged stablecoin development during his campaign.
Multiple bills have already been submitted by lawmakers across parties.
Major Korean banks are collaborating on a won-backed stablecoin, targeting late 2025 or early 2026.
Tougher on Tax Dodgers
Alongside the bill, regulators are cracking down on citizens hiding assets in cryptocurrency to dodge taxes, seizing crypto wallets tied to nearly $14M in unpaid balances.
The Stakes
With a $266.7B stablecoin market still 99.8% dollar-backed, South Korea’s plan could reshape Asia’s digital finance future.
