South Korea’s Financial Services Commission (FSC) is preparing a bill that would set rules for stablecoins tied to the national currency.
The measure is expected to be introduced to the National Assembly in October as part of the second stage of the Virtual Asset User Protection Act, according to local outlet MoneyToday.
The FSC has been working on this framework since 2023 through its virtual asset committee.
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The bill will likely set requirements for stablecoin issuance, how collateral must be managed, and what systems providers should have in place to monitor operations.
Democratic Party representative Park Min-kyu said he had received a briefing on the direction of the plan. He said:
The government bill is expected to be submitted to the National Assembly around October.
Support for a won-backed stablecoin has been building. President Lee Jae-myung promoted the idea during his campaign, and several lawmakers have already filed related proposals.
These include the Digital Asset Basic Act from Representative Min Byung-deok, the Act on the Issuance and Circulation of Value-Stable Digital Assets from Representative Ahn Do-gul, and the Act on Payment Innovation Using Value-Pegged Digital Assets from Representative Kim Eun-hye.
Alongside the legislative process, enforcement actions are taking place. On August 18, Jeju City tax officials began freezing and seizing cryptocurrency from residents suspected of avoiding tax obligations. How? Read the full story.
