South Korea is becoming a key center of discussion for stablecoin regulation. New legislative initiatives are being developed that could fundamentally change the market.
Backdrop of Stablecoin Regulations in South Korea
South Korea's approach to stablecoin regulation has been inconsistent to date. Several bills are under review, which might significantly alter the issuance and compliance practices in this area. A primary goal is to strengthen control over digital finance and reduce dependence on dollar-backed stablecoins.
Comparison of Stablecoin Bills
The proposed bills in South Korea vary in their regulatory approaches. For instance, Ahn Do-geol's bill requires issuers to maintain minimum capital and hold 100% reserves in liquid assets. In contrast, Kim Eun-hye's proposal allows for interest payments on stablecoins to attract investors, balancing innovation with user protection. Min Byung-duk's bill also aims to improve transparency and prevent capital outflows.
Global Context of Stablecoin Regulation
South Korea's stance on stablecoin regulation aligns with global trends focused on increased oversight of digital assets. According to the Financial Times, over $19 billion in stablecoins left the country in Q1 2025, highlighting the need for an effective regulatory framework to safeguard financial stability.
The situation around stablecoin regulation in South Korea is currently active in discussions and may serve as a model for other countries. Achieving the right balance between innovation and economic stability will be key to success.
