South Korea to Submit Won Stablecoin Bill in October 2025

Generated by AI AgentCoin World
Monday, Aug 18, 2025 7:56 am ET1min read
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Aime RobotAime Summary

- South Korea’s FSC will submit a won-pegged stablecoin bill in October 2025 to reduce dollar reliance.

- The framework mandates collateral management, AML/KYC compliance, and liquidity safeguards for stablecoin issuers.

- Local banks collaborate on a won-pegged stablecoin project, aiming to enhance financial stability by 2026.

- Authorities intensify crypto tax enforcement, freezing assets of 3,000 suspects with $14.2M in unpaid taxes.

South Korea is moving forward with the development of a regulatory framework for stablecoins, with the Financial Services Commission (FSC) preparing to submit a government bill to the National Assembly in October 2025. The initiative is part of the second phase of the Virtual Asset User Protection Act and aims to provide clear rules for the issuance, collateral management, and internal controls of stablecoins [1]. The DPK’s Park Min-kyu confirmed during a policy debate that the FSC has shared its policy direction, with the bill expected to be submitted by October [2].

The focus of the legislation is on won-pegged stablecoins, reflecting the government’s intent to reduce the country’s reliance on dollar-pegged tokens. This effort gained momentum after President Lee Jae-myung campaigned on the idea, and since then, several lawmakers have proposed related bills. These include the

Digital Asset
Basic Act by
Rep
. Min Byung-deok and the Act on Payment Innovation Using Value-Pegged Digital Assets by Rep. Kim Eun-hye [1]. The FSC has been working on the framework since 2023 through its virtual asset committee, aiming to create a structured environment for crypto service providers.

Local banks have also been involved, with major institutions collaborating on a won-pegged stablecoin project aimed at materializing by late 2025 or early 2026. This move is driven by industry stakeholders who argue that the current dominance of dollar-based stablecoins poses risks to domestic financial stability [1]. The initiative aligns with the FSC’s broader goal of balancing innovation with regulatory oversight and consumer protection.

In addition to stablecoin regulation, South Korean authorities have intensified efforts to combat tax evasion through cryptocurrency. Tax officials in Jeju City began freezing and seizing digital assets from individuals suspected of using crypto to evade tax obligations, targeting approximately 3,000 individuals with a combined debt of around $14.2 million [1]. This reflects a growing focus on crypto compliance and enforcement.

The proposed legislation is expected to include robust internal control systems, compliance with anti-money laundering (AML) and know-your-customer (KYC) requirements, and transparent collateral management. These measures aim to mitigate risks such as liquidity mismatches and operational failures, ensuring that stablecoin operations are resilient and trustworthy [2]. The FSC’s approach seeks to align with international standards while fostering a supportive environment for innovation.

As the bill moves toward introduction, market participants will closely monitor its implications for the digital asset ecosystem. South Korea’s regulatory direction could serve as a model for other Asian countries exploring similar frameworks. The government’s proactive stance is expected to encourage institutional adoption and enhance confidence in the digital currency market [1].

Source:

[1] South Korea to Unveil Won Stablecoin Bill in October (https://cointelegraph.com/news/south-korea-won-stablecoin-bill-october-dollar-dependence)

[2] South Korea readies stablecoin framework, bill set for October (https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96657850/south-korea-readies-stablecoin-framework-bill-set)