The Financial Services Commission (FSC) of South Korea is set to present a draft regulatory framework for stablecoins to the National Assembly in October. Park Min-kyu, a member of the ruling party, confirmed that he received this information from the FSC during a stablecoin-focused meeting. The draft includes provisions related to issuance rules, collateral management, and internal risk control systems, and it aims to be part of a second comprehensive cryptocurrency regulatory package.
Components of the October-Scheduled Stablecoin Draft
The draft, as reported by MoneyToday, seeks to clarify the obligations of stablecoin issuers, how collateral should be maintained, and how risks should be monitored. According to Park Min-kyu, the FSC aims to submit these regulations as part of a single, cohesive package to the legislative body by October, marking another significant wave of regulation for the nation’s crypto market.
The meeting drew participation from representatives of South Korea’s largest internet companies, including Naver and Kakao, as well as major banks. Some participants suggested establishing a common network between the payment sector and banking to foster innovation and interoperability.
The newly elected president, Lee Jae Myung, has pledged to boost the domestic stablecoin market pegged to the local currency, thereby strengthening monetary sovereignty in the digital finance era. Banks and payment companies have begun to secure trademarks for stablecoin brands and prepare related services.
According to Yonhap, South Korea’s four major banks (KB Kookmin, Woori, Shinhan, and Han) are considering discussions with Heath Tarbert, President of Circle, a USDC issuer, who is scheduled to visit the country next week.
However, the Bank of Korea remains cautious. Governor Lee Chang-yong has advocated that stablecoin issuances pegged to the South Korean won should be restricted to licensed banks. Lee cautions that reckless approvals could disrupt the country’s stringent foreign exchange policies.
Developments in Neighboring Japan
In neighboring Japan, the launch of the first yen-pegged stablecoin is also gaining momentum. According to a Sunday report by Nikkei, fintech company JPYC anticipates regulatory approval for issuance as soon as the fall.
Regional activity has increased, notably with the enactment of the Genius Act in the United States last month. Aligned with former President Donald Trump’s efforts to bolster the dollar’s global supremacy through stablecoins, the law provides a federal-level regulatory framework for stablecoins in the U.S.
