Financial Regulator Prepares Groundbreaking Framework

South Korea's Financial Services Commission (FSC) is finalizing a comprehensive regulatory framework for won-backed stablecoins, with draft legislation expected to reach the National Assembly in October. This move forms part of Phase Two implementation of the Virtual Asset User Protection Act, signaling the country's push to establish clear rules for digital assets.

Legislative Momentum Builds

Democratic Party Representative Park Min-kyu confirmed receiving detailed briefings about the upcoming bill during recent policy discussions. The proposed legislation will establish strict requirements covering stablecoin issuance, collateral management protocols, and internal control systems. ——This marks South Korea's most significant regulatory advancement since implementing its first crypto protection laws——

Reducing Dollar Dominance

The initiative gains urgency as dollar-pegged stablecoins currently command 【99.8%】 of the $266.7 billion global stablecoin market. Major South Korean banks have already begun collaborating on domestic won-pegged alternatives, with pilot projects targeting late 2025 launches. Interestingly, this aligns with President Lee Jae-myung's campaign promise to develop sovereign digital currency solutions.

Multi-Party Legislative Push

Lawmakers across party lines have submitted competing proposals including Representative Min Byung-deok's Digital Asset Basic Act and Representative Kim Eun-hye's Payment Innovation Act. The FSC's forthcoming bill aims to consolidate these efforts into a unified regulatory approach—addressing what industry leaders call an overdue correction to dollar dependency.

Parallel Enforcement Actions

While crafting new regulations, authorities are cracking down on crypto-related tax evasion. Jeju City officials recently froze digital assets belonging to 3,000 suspected tax dodgers owing 【$14.2 million】. This two-pronged strategy reflects South Korea's balanced approach—fostering innovation while maintaining financial oversight.

Global Regulatory Race

As the U.S. accelerates its own stablecoin legislation, South Korea's October deadline positions it among the first Asian economies to establish comprehensive digital currency rules. The coming months will reveal whether these measures can help the won gain traction against entrenched dollar-pegged alternatives in the crypto ecosystem.