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South Korea Set to Regulate Won-Based Stablecoin with Upcoming FSC Bill

South Korea's Financial Services Commission (FSC) is preparing to introduce new legislation aimed at regulating won-denominated stablecoins.

This initiative is part of the second phase of the Virtual Asset User Protection Act, focusing on issuing guidelines, collateral management, and internal controls.

Lawmakers, including Democratic Party member Park Min-gyu, anticipate the FSC will submit the proposed bill to the National Assembly in October.

The growing interest in won-backed stablecoins reflects South Korea's desire to enhance domestic control over its digital currency landscape.

Notably, President Lee Jae-myung advocated for these stablecoins during his campaign, further energizing legislative efforts.

Numerous bills are advancing in the parliament, including those proposing frameworks for digital assets and payment innovations.

As discussions progress, momentum is expected to increase following the FSC's release of its official bill.

In addition, South Korean banks are exploring plans to launch a stablecoin pegged to the won, signaling a shift towards regulated digital assets.

Conversely, experts caution about the risks associated with such stablecoins, advocating for issuance exclusively by licensed banks initially.

As South Korea and Japan race to establish their respective stablecoins, regulatory clarity is becoming increasingly critical in the evolving crypto landscape.