South Korea is actively working on regulations for stablecoins, with the bill expected to be submitted to the National Assembly in October.
Stablecoin Bill in South Korea
The Financial Services Commission (FSC) plans to submit a stablecoin bill to the National Assembly in October. This legislation will be part of the second set of digital asset laws currently being developed in the country. The main aim is to create a safe and structured market for stablecoins. The bill will focus on regulating how stablecoins are created and maintained, requiring issuers to back them with reliable collateral to protect users from financial loss.
Support from Banks and Internet Companies
Recently, lawmakers, major banks, and leading internet companies like Naver and Kakao gathered to discuss stablecoins. Many participants emphasized the importance of cooperation between banks and payment companies to create an innovative ecosystem that is user-friendly. South Korea's four largest banks, including KB Kookmin and Shinhan, are also exploring global partnerships to expand their stablecoin capabilities.
Caution from the Central Bank
Despite the active push for stablecoins, South Korea’s central bank remains cautious. Governor Lee Chang-yong advocates for only licensed banks to issue stablecoins, warning that too many issuers could weaken currency controls and pose risks to the financial system.
Against the backdrop of global interest in stablecoins, South Korea is taking steps to create a clear and secure regulatory environment, which could open new horizons for digital finance in the country.
