- South Korea’s FSC Chair, Lee Eog-weon, stated stablecoin implementation must balance innovation with sufficient safeguards.
- He outlined three key considerations: global consistency, support for innovation, and financial system stability.
- The FSC is in the second phase of its virtual asset legislation, which includes stablecoins, and plans to submit it to the National Assembly.
Stablecoins must be introduced with sufficient safeguards, given their potential effect on the financial system. This was the message from Lee Eog-weon, Chairman of South Korea’s Financial Services Commission (FSC).
He delivered this statement while addressing the National Assembly Budget Settlement Special Committee’s 2026 budget review on November 10. According to Lee, the three key considerations for introducing stablecoins include global consistency, innovation, and stability.
The ‘Consistency, Innovation, Stability’ Framework
Expanding on his views, the FSC Chief noted that a typical stablecoin needs to maintain global consistency to keep pace with the prevailing trends. He added that the digital asset must represent a channel for innovation that can be utilized in various ways, while having sufficient safeguards, considering the disruption it could introduce to the financial system.
Lee also used the presentation to respond to legislators and clarify the innovation’s potential. He described stablecoins as the engine driving the nation’s transition to the digital currency era. South Korea, Lee stated, must adopt a proactive approach in thinking about this innovation.
FSC Balancing Innovation with Systemic Safeguards
The FSC Chair further clarified the proposed plan to limit stablecoin operators to banks. He noted that the issue is under discussion with the relevant authorities. However, he assured the legislators that the ongoing process would not be complete without considering feedback from the lawmakers.
According to Lee, various options are on the table, all of which are based on the principle of expanding innovation while ensuring stable operation. In the meantime, the South Korean regulator is advanced in the process and is currently preparing the second phase of legislation on virtual assets, including regulations on stablecoins. The commission is working toward concluding the current phase and submitting its work to the National Assembly before the end of the year.
Related: New Bills in South Korea Propose Capital Requirements for Stablecoin Issuers
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Source: https://coinedition.com/south-koreas-fsc-chair-names-3-key-pillars-for-stablecoin-implementation/
