- South Korea’s FSC to submit bill regulating KRW-pegged stablecoins.
- Circle’s involvement may indicate bank partnerships.
- Potential market shifts in stablecoin issuance and compliance.
South Korea’s Financial Services Commission plans to submit a stablecoin regulation bill to the National Assembly by October 2025, primarily focusing on won-pegged stablecoins.
The move seeks to establish digital monetary control, aligning with global regulatory trends, and could influence local banks’ approach to digital currencies.
South Korea’s Financial Services Commission (FSC) is preparing to submit a stablecoin regulation bill in October 2025. The bill targets stablecoins pegged to the South Korean won, introducing mandatory requirements for issuance, collateral, and risk management.
President Lee Jae Myung and the FSC are key drivers of this initiative. The Bank of Korea has expressed caution, emphasizing that stablecoin issuance should be limited to licensed banking institutions to maintain stability.
The bill’s introduction affects various stakeholders, including banking institutions and the cryptocurrency industry. It is anticipated to enhance control over digital currencies aligned with national monetary sovereignty while mitigating risks related to financial and foreign currency management.
Financial institutions and stablecoin issuers are expected to undergo significant adjustments. The anticipated regulatory framework aligns with global trends, aiming to prevent instability by establishing a robust regulatory environment for stablecoin usage within South Korea. As President Lee Jae Myung stated, “We prioritize the creation of a robust market for stablecoins pegged to the Korean won to support national monetary sovereignty in the evolving global finance landscape.”
Financial markets may see increased funding towards compliant stablecoin ventures. The potential collaboration between major banks and Circle suggests co-listing or interoperability with KRW-pegged stablecoins, affecting on-chain liquidity and market dynamics.
Insights suggest a shift in stablecoin regulatory approaches may impact broader crypto market involvement. Previous models from Japan and the EU serve as comparative frameworks, indicating regulatory trends that emphasize clarity and compliance to safeguard digital finance infrastructure.
