South Korea to Submit Stablecoin Regulation Bill by 2025

South Korea is moving forward with the submission of a stablecoin regulation bill to the National Assembly by October 2025, as outlined by the country’s Financial Services Commission (FSC). The proposed legislation will focus primarily on stablecoins pegged to the South Korean won, establishing clear requirements for issuance, collateral, and risk management. This initiative is part of a broader effort to assert control over digital monetary systems and align with global regulatory trends [1].

President Lee Jae Myung has positioned himself as a key driver of the bill, with the FSC leading the implementation process. The Bank of Korea has emphasized that only licensed banking institutions should be allowed to issue stablecoins, a move designed to reinforce financial stability and prevent potential risks associated with unregulated digital currencies. This stance reflects a cautious yet forward-looking approach to integrating stablecoins into the national financial infrastructure [1].

The proposed bill is expected to bring about significant changes for stakeholders, including financial institutions and cryptocurrency firms. It will likely necessitate major operational adjustments for banks and stablecoin issuers to meet compliance standards. The FSC has indicated that the framework will help safeguard national monetary sovereignty while supporting the responsible use of stablecoins in both domestic and international transactions [1].

Industry insights suggest that the regulatory clarity provided by the bill could attract increased funding to compliant stablecoin projects. Reports indicate potential collaborations between major local banks and international players such as Circle, hinting at possible co-listings or interoperability with KRW-pegged stablecoins. These developments could influence on-chain liquidity and reshape market dynamics within South Korea’s digital currency ecosystem [1].

The regulatory approach in South Korea appears to mirror trends observed in Japan and the European Union, where structured and transparent frameworks for stablecoin issuance are being developed. These examples highlight a growing consensus among regulators that stablecoins, while presenting unique risks, can also serve as valuable tools for cross-border payments and financial inclusion [1].

By framing the legislation as both a regulatory and an endorsement of stablecoin usage, South Korea is signaling a more pragmatic and inclusive stance toward digital finance. This shift from earlier, more restrictive strategies suggests a willingness to embrace innovation while maintaining economic stability. As the bill progresses, it will be closely monitored by market participants, including crypto exchanges, fintech firms, and institutional investors, who view it as a potential catalyst for broader adoption of stablecoins in the region [1].

References:

[1] South Korea's Financial Regulator to Submit Stablecoin ... (https://www.bitget.com/news/detail/12560604917164)

[3] Here's How Stablecoins Are Taking Over South Korea (https://www.ccn.com/education/crypto/digital-won-paused-stablecoins-south-korea-explained/)

[4] Standard Chartered seizes stablecoin opportunity in Hong ... (https://www.retailbankerinternational.com/analyst-comment/standard-chartered-seizes-stablecoin-opportunity-in-hong-kong/)

[6] Crypto is booming. Washington is driving the rally | Business (https://www.kten.com/news/business/crypto-is-booming-washington-is-driving-the-rally/article_07625c57-2086-5475-b0f5-87a0a397050b.html)

[7] The Trump Doctrine on Digital Money: South Korea Is First ... (https://www.americanthinker.com/articles/2025/08/the_trump_doctrine_on_digital_money_south_korea_is_first_to_sign_on.html)