South Korea to Submit Won-Based Stablecoin Bill in October 2025

South Korea is moving toward a formal regulatory framework for won-based stablecoins, with the Financial Services Commission (FSC) preparing to submit a draft bill to the National Assembly as early as October 2025. This initiative represents the second phase of the Virtual Asset User Protection Act and aims to provide a clear legal structure for how stablecoins are issued, managed, and collateralized within the country [1]. The FSC has emphasized that the legislation is intended to foster a secure and transparent environment for digital assets while reducing the nation’s reliance on dollar-backed stablecoins [2].

The proposed law is expected to cover key areas including issuance rules, collateral requirements, and operational safeguards. Lawmakers from across the political spectrum have introduced multiple bills with differing approaches, allowing the National Assembly to select from a range of regulatory models [3]. This legislative diversity reflects growing political and market momentum behind the initiative, which was highlighted by President Lee Jae-Myung during his campaign [4].

Banks and financial institutions are also preparing for the regulatory shift. Eight major Korean banks have announced exploratory discussions for a joint venture to issue a won-backed stablecoin, with a potential launch expected by early 2026, contingent on regulatory approval [5]. Notably, South Korea’s four largest banks are set to engage with the president of Circle, a U.S.-based stablecoin issuer, during his visit to Seoul, highlighting the global interest in the country’s regulatory direction [6].

South Korea is not alone in its push for national stablecoins. In Japan, fintech firm JPYC is reportedly close to securing approval for a yen-backed token before year-end. Analysts view these parallel developments as part of a broader trend in Asia to develop alternatives to U.S. dollar-dominated digital currencies [7]. However, South Korea’s central bank has expressed caution, with Governor Rhee Chang-yong warning that stablecoin issuance should be limited to licensed banks to avoid destabilizing the monetary system [8].

The legislation is seen as a critical step in shaping South Korea’s digital asset ecosystem, balancing innovation with consumer protection and regulatory oversight. If passed, it could set a precedent for other nations seeking to regulate stablecoins while maintaining financial stability [9]. The FSC has consistently underscored its commitment to supporting blockchain innovation, provided that it aligns with broader financial policies and safeguards.

As the bill moves toward parliamentary review, market participants and regulators will be closely monitoring its final structure, particularly in relation to compliance obligations and collateral management. The outcome of this legislative process will have far-reaching implications for both domestic and international stakeholders operating in the stablecoin space [10].

Source:

[1] South Korea to Roll Out Won-Based Stablecoin Law This October (https://coindoo.com/south-korea-to-roll-out-won-based-stablecoin-law-this-october/)

[2] South Korea to Introduce Stablecoin Regulation Bill This ... (https://www.unlock-bc.com/147260/south-korea-to-introduce-stablecoin-regulation-bill/)

[3] South Korea to advance stablecoin push with new regulation (https://crypto.news/south-korea-to-advance-stablecoin-push-with-new-regulation-report/)

[4] South Korea to Roll Out New Legislation for Won-Pegged ... (https://blockchair.com/news/south-korea-won-stablecoin-bill-october-dollar-dependence--7d98389c47335c8a)

[5] South Korea to Introduce Stablecoins Bill in October (https://thecoinrise.com/south-korea-to-introduce-stablecoins-bill-in-october/)

[6] South Korea Halts All Crypto Lending, Cites Investor Risk (https://coinedition.com/south-korea-halts-crypto-lending-investor-risk/)

[7] US Treasury Opens Feedback on GENIUS Act Until ... (https://www.bitdegree.org/crypto/news/us-treasury-opens-feedback-window-on-genius-act-until-october-17)

[8] South Korea Moves to Regulate Won-Based Stablecoin ... (https://blockchair.com/news/south-korea-won-stablecoin-bill-october-dollar-dependence--75c8abc8e8e72ee8)