On July 28, 2025, South Korea's National Assembly introduced its first bill focused on won-based stablecoins. The initiative aims to create a regulatory basis to stabilize the financial system while reducing reliance on dollar-denominated assets.
Objectives of the Bill
The bill aims to reduce the dependency on dollar-based stablecoins and strengthen the country's monetary sovereignty, playing a significant role in South Korea's economic strategy.
Regulatory Approaches
The bill's development involved the Democratic Party, with notable figures like Representative Ahn and President Lee advocating for a robust regulatory framework for stablecoins. The Financial Services Commission will oversee issuers, while the Bank of Korea will ensure compliance with monetary policy.
Impact on the Crypto Industry
The introduction of the bill could significantly alter the demand for dollar-based stablecoins by providing local alternatives. It is expected to lead to regulatory changes for cryptocurrency exchanges and impose high liquidity requirements on issuers.
The won-based stablecoin bill could represent a pivotal move toward South Korea's financial independence and may reshape the balance of power in cryptocurrency markets, taking lessons from past failures like the Terra-Luna collapse.
