South Korea to Officially Introduce Stablecoin Framework
South Korea is preparing to roll out a regulatory framework for a stablecoin backed by the South Korean won (KRW), with the country’s financial regulator planning to present a government bill in October. According to local media, the Financial Services Commission (FSC) will include the proposal as part of the second phase of the Virtual Asset User Protection Act.
Democratic Party Representative Park Min-kyu said during a policy debate that he had been briefed on the FSC’s direction for stablecoin policy. “The government bill is expected to be submitted to the National Assembly around October,” Park stated.
The legislation is expected to set requirements for issuance, collateral management, and internal control systems for stablecoins. The FSC has been developing this framework since 2023 through its virtual asset committee to provide clearer guidance for crypto service providers.
The push for a won-pegged stablecoin comes as the United States advances its own stablecoin legislation. Interest in a Korean version has grown since President Lee Jae-myung pledged support during his campaign.
Several lawmakers have also introduced related bills, such as the Digital Asset Basic Act and other proposals covering issuance and payments with value-stable digital assets. Industry voices have emphasized the urgency of reducing reliance on dollar-based stablecoins, which currently dominate the market.
In June, major South Korean banks announced a joint effort to develop a stablecoin pegged by the South Korean won (KRW), with the token expected to launch in late 2025 or early 2026. Data from RWA.xyz shows the total stablecoin market is valued at $266.7 billion, of which dollar-backed stablecoins account for $266.3 billion, or 99.8% of the total.
At the same time, South Korean authorities are tightening enforcement against tax evasion through crypto. On Monday, tax officials in Jeju City began freezing and seizing digital assets from individuals suspected of avoiding taxes. Nearly 3,000 people with arrears totaling around $14.2 million are under investigation to confirm whether their holdings can be seized to settle outstanding balances.
Sources:
https://cointelegraph.com/news/south-korea-won-stablecoin-bill-october-dollar-dependence