The South Korean Financial Services Commission is set to propose a regulatory framework for a won-pegged stablecoin in October.
By Parth Dubey
Editor Hamza Tariq
Updated
2 mins read
South Korea is preparing to introduce legislation that could establish a regulatory framework for a won-pegged stablecoin, marking one of the country’s most ambitious pushes into the digital asset sector.
According to local reports, the Financial Services Commission (FSC) will submit its stablecoin bill to the National Assembly in October.
The bill will outline rules for issuance, collateral management, and internal risk controls, forming part of the second phase of the Virtual Asset User Protection Act. Lawmakers have already submitted several related proposals.
The initiative is closely tied to President Lee Jae Myung’s campaign pledge to create a robust domestic stablecoin market.
He aims to reduce reliance on US dollar–based tokens and strengthen South Korea’s monetary sovereignty.
The stablecoin effort has drawn support from some of South Korea’s most powerful institutions. Representatives from Naver, Kakao, and the country’s four largest banks, KB Kookmin, Woori, Shinhan, and Hana, joined lawmakers in recent discussions.
Industry participants called for collaboration between banking and payments networks to ensure interoperability and efficiency.
On the other hand, eight major banks, including Nonghyup, Corporate, Suhyup, Citi Korea, and SC First Bank, are preparing to launch a won-pegged stablecoin project by late 2025 or early 2026.
The project will likely adopt a trust-based or 1:1 deposit token model, though it remains subject to regulatory approval. The initiative has already gained backing from blockchain-focused nonprofit groups and the Korea Financial Telecommunications and Clearings Institute.
In the United States, President Donald Trump signed the Genius Act into law last month, a landmark bill aimed at cementing the dollar’s supremacy in the digital asset space through stablecoin regulation.
The move has intensified calls in other countries for homegrown alternatives to dollar-based coins. Neighboring Japan is also nearing the debut of its first yen-denominated stablecoin.
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A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
