South Korea Plans Won-Backed Stablecoin Regulations
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South Korea prepares October bill to regulate won-backed stablecoins, aiming to boost financial sovereignty and lead in digital finance. South Korea’s Financial Services Commission (FSC) is set to propose a stablecoin regulation bill in October 2025. The bill will outline rules for issuing won-backed stablecoins, managing collateral, and establishing internal risk controls. According to MoneyToday, Ruling Party legislator Park Min-kyu revealed this plan at a stablecoin hearing on August 18, 2025. The Virtual Asset User Protection Act is one of the main digital asset frameworks, which the proposal by the FSC will be included in the second phase. President Lee Prioritizes Local Stablecoin Market for Monetary Sovereignty The transfer is an indication of South Korea in its effort to boost its digital finance market. The new president, Lee Jae-myung, has secured the stablecoins backed by won as a priority in order to increase monetary sovereignty. He advocated the development of a strong local stablecoin market. Consequently, local banks and payment companies are gearing up to this change. As an example, a number of companies have filed trademarks on stablecoins and are working on the services. This is a great indication of industry support for the government’s vision. Moreover, the bill by FSC will fill the market gaps in crypto. Stablecoins are cryptocurrencies that are anchored to fiat currency, such as the South Korean won. Today, stablecoins are based on the U.S. dollar and prevail worldwide, which further promotes the dominance of the dollar. Conversely, South Korea is keen to encourage stablecoins supported by the won so as to boost its domestic virtual asset sector. The FSC feels that this will increase the financial independence and competitiveness of the global digital economy. Related Reading: Japan Set to Approve First Yen-Pegged Stablecoin | Live Bitcoin News On the other hand, the bill…
