South Korea to Introduce Won-Pegged Stablecoin Legislation by October
South Korea is set to introduce legislation for a won-pegged stablecoin, aiming to enhance its digital asset sector.
FSC to Submit Stablecoin Bill in October
- The Financial Services Commission (FSC) will present the stablecoin bill to the National Assembly in October.
- The bill will cover rules on issuance, collateral management, and internal risk controls as part of the Virtual Asset User Protection Act.
- This initiative aligns with President Lee Jae Myung’s pledge to develop a domestic stablecoin market.
- The goal is to reduce reliance on US dollar–based tokens and boost monetary sovereignty.
Banks and Tech Giants Support Stablecoin Development
- Support has come from major institutions including Naver, Kakao, and South Korea's largest banks such as KB Kookmin and Woori.
- Industry leaders emphasize the need for collaboration between banking and payment networks for better interoperability.
Eight Banks to Launch Stablecoin by Late 2025
- Eight banks, including Nonghyup and Citi Korea, are preparing to launch a won-pegged stablecoin project by late 2025 or early 2026.
- The project may use a trust-based model, pending regulatory approval.
- Backers include blockchain nonprofits and the Korea Financial Telecommunications and Clearings Institute.