South Korea Proposes Stablecoin Licensing in New Crypto Regulation Bill

South Korea is advancing its crypto regulation with a new stablecoin bill introduced by lawmaker Min Seok from the Democratic Party. The bill establishes a licensing regime for stablecoin issuers, aligning with existing cryptocurrency regulations.

Key elements of the new legislation

Licensing required for stablecoin issuers
Minimum capital requirement of 500 million Korean won (approximately $367,890)
Supports the development of a Korean won-based stablecoin market to retain domestic capital
Aims to enhance investor protection alongside promoting the digital asset sector
Part of a broader strategy for a comprehensive regulatory framework by the end of 2025

In recent months, the stablecoin sector has seen significant growth globally, with total stablecoin value reaching an all-time high of $250 billion in May. This expansion coincides with legislative efforts in the U.S. and other regions, indicating a trend towards increased regulation and institutionalization of cryptocurrency markets.