South Korea to Regulate Won-Backed Stablecoins by October 2025

South Korea is moving forward with plans to regulate stablecoins backed by the Korean won, with the Financial Services Commission (FSC) preparing to submit a legislative proposal to the National Assembly by October 2025. The bill is expected to be a key element of the broader Virtual Asset User Protection Act, outlining rules for the issuance, collateral management, and risk oversight of won-backed stablecoins. This initiative is part of the government's broader strategy to regulate digital assets while promoting the use of stablecoins for domestic and cross-border financial activities [1][2][3].

The FSC has already briefed lawmakers on the proposed legislative structure. Once passed, the law is expected to create a formal regulatory environment for financial institutions and fintech companies to issue and manage stablecoins, ensuring market transparency and stability. The move aligns with South Korea’s ongoing efforts to modernize its financial infrastructure and strengthen its position in the digital asset sector [4][5][6].

Industry observers highlight that the legislation could attract local banks and institutional players to the stablecoin market once a clear legal framework is in place. This suggests growing institutional interest in the potential of stablecoins to support financial innovation, particularly in cross-border transactions and decentralized finance (DeFi) applications. South Korea’s approach is being closely monitored as one of several Asian countries, including Japan, that are accelerating regulatory clarity for stablecoins amid global interest in digital currencies [7][8][9].

The regulatory push comes at a time when stablecoins are gaining traction in various financial ecosystems worldwide. These tokens, designed to maintain a stable value by being backed by fiat currencies or other assets, are increasingly used in payments, trading, and DeFi platforms. South Korea’s regulatory framework is expected to set a precedent for how governments can support innovation while ensuring consumer protection and financial stability [10].

South Korea’s efforts to regulate won-backed stablecoins are part of a broader trend in major economies such as the U.S., Europe, and Hong Kong. These jurisdictions are also introducing legal frameworks to govern the fast-growing stablecoin market, reflecting the increasing importance of digital assets in the global financial system [11][12].

Source:

[1] South Korea to Unveil Won Stablecoin Bill in October (Cointelegraph)

https://cointelegraph.com/news/south-korea-won-stablecoin-bill-october-dollar-dependence

[2] South Korea Moves to Regulate Won-Based Stablecoin (Coinpedia)

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

[3] Won-Pegged Stablecoin Rules Headed to Korea's Assembly (BitDegree)

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

[4] South Korea Plans Won-Backed Stablecoin Regulations (Live)

https://www.livebitcoinnews.com/south-korea-plans-won-backed-stablecoin-regulations/

[5] South Korea readies stablecoin framework, bill set for (TradingView)

https://www.tradingview.com/news/cointelegraph:5f0561224094b:0-south-korea-readies-stablecoin-framework-bill-set-for-october/

[6] South Korea Plans Regulatory Framework for Won-Backed (Binance)

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

[7] South Korea Set to Introduce Stablecoin Legislation Before (CoinCentral)

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

[8] South Korea to advance stablecoin push with new regulation (Crypto)

https://crypto.news/south-korea-to-advance-stablecoin-push-with-new-regulation-report/

[9] South Korea Pushes Won-Pegged Stablecoin Bill (Coinspeaker)

https://www.coinspeaker.com/south-korea-won-stablecoin-dollar-competition/

[10] Asian powerhouses Japan and South Korea advance (CryptoSlate)

https://cryptoslate.com/asian-powerhouses-japan-and-south-korea-advance-stablecoin-regulatory-efforts/

[11] Asian powerhouses Japan and South Korea advance (CryptoSlate)

[12] Asian powerhouses Japan and South Korea advance (CryptoSlate)