South Korea to Introduce Won-Backed Stablecoin Regulation Bill in October 2025

South Korea is set to advance its digital asset regulatory agenda with the introduction of a government-backed stablecoin regulation bill in October 2025. The Financial Services Commission (FSC) has confirmed its intention to submit the proposal to the National Assembly, forming part of the broader Virtual Asset User Protection Act [1]. The legislation is expected to establish the first comprehensive legal framework for stablecoins pegged to the South Korean won, addressing key areas such as issuance, collateral management, and internal control systems for firms operating in this space [2].

The initiative follows a multi-year effort by the FSC to develop stablecoin regulations through its virtual asset committee. The regulator has emphasized the need for standardized practices as the usage of stablecoins in payments and trading continues to grow domestically [3]. The proposed bill will require stablecoin issuers to maintain transparent collateral management systems, ensuring that each digital token is fully backed by equivalent assets, while also strengthening compliance with anti-money laundering (AML) standards [4].

The move has gained political momentum since President Lee Jae-myung pledged support for a won-based stablecoin during his election campaign. In response, several lawmakers have proposed separate legislative initiatives, including the Digital Asset Basic Act and the Act on the Issuance and Circulation of Value-Stable Digital Assets [5]. By consolidating these proposals into a single government bill, the FSC aims to provide a unified and clear regulatory base for the sector [6].

One of the bill’s key objectives is to reduce the country’s reliance on dollar-pegged stablecoins, which currently dominate the market. This shift aligns with broader efforts to modernize South Korea’s financial infrastructure and reinforce its position as a leader in digital finance innovation [7]. The legislation is also expected to bolster financial stability by introducing mechanisms to mitigate risks such as liquidity shocks or mismanagement within stablecoin operations [8].

The development comes amid a growing global interest in stablecoin regulation. Regulators in the United States and other jurisdictions are also advancing their own frameworks, making South Korea’s approach an important contribution to the evolving global regulatory landscape [9].

Source:

[1] AInvest: https://www.ainvest.com/news/south-korea-regulate-won-backed-stablecoins-october-2025-2508/

[2] AInvest: https://www.ainvest.com/news/south-korea-overhaul-aml-rules-response-stablecoin-growth-2508/

[3] Live: https://www.livebitcoinnews.com/south-korea-plans-won-backed-stablecoin-regulations/

[4] MEXC: https://www.mexc.com/news/south-korea-to-advance-stablecoin-push-with-new-regulation-report/65824

[5] Binance: https://www.binance.com/en/square/post/08-18-2025-south-korea-plans-regulatory-framework-for-won-backed-stablecoin-28480629028009

[6] BitDegree: https://www.bitdegree.org/crypto/news/won-pegged-stablecoin-rules-set-to-hit-south-koreas-assembly-in-october

[7] CoinCentral: https://coincentral.com/south-korea-set-to-introduce-stablecoin-legislation-before-end-of-october/

[8] UNLOCK: https://www.unlock-bc.com/147260/south-korea-to-introduce-stablecoin-regulation-bill/

[9] Coinpedia: https://coinpedia.org/news/south-korea-moves-to-regulate-won-based-stablecoin-with-new-fsc-bill/