The post South Korea Plans Won-Backed Stablecoin Regulations appeared on BitcoinEthereumNews.com. South Korea prepares October bill to regulate won-backed stablecoins, aiming to boost financial sovereignty and lead in digital finance. South Korea’s Financial Services Commission (FSC) is set to propose a stablecoin regulation bill in October 2025. The bill will outline rules for issuing won-backed stablecoins, managing collateral, and establishing internal risk controls. According to MoneyToday, Ruling Party legislator Park Min-kyu revealed this plan at a stablecoin hearing on August 18, 2025. The Virtual Asset User Protection Act is one of the main digital asset frameworks, which the proposal by the FSC will be included in the second phase. President Lee Prioritizes Local Stablecoin Market for Monetary Sovereignty The transfer is an indication of South Korea in its effort to boost its digital finance market. The new president, Lee Jae-myung, has secured the stablecoins backed by won as a priority in order to increase monetary sovereignty. He advocated the development of a strong local stablecoin market. Consequently, local banks and payment companies are gearing up to this change. As an example, a number of companies have filed trademarks on stablecoins and are working on the services. This is a great indication of industry support for the government’s vision. Moreover, the bill by FSC will fill the market gaps in crypto. Stablecoins are cryptocurrencies that are anchored to fiat currency, such as the South Korean won. Today, stablecoins are based on the U.S. dollar and prevail worldwide, which further promotes the dominance of the dollar. Conversely, South Korea is keen to encourage stablecoins supported by the won so as to boost its domestic virtual asset sector. The FSC feels that this will increase the financial independence and competitiveness of the global digital economy. Related Reading: Japan Set to Approve First Yen-Pegged Stablecoin | Live Bitcoin News On the other hand, the bill… The post South Korea Plans Won-Backed Stablecoin Regulations appeared on BitcoinEthereumNews.com. South Korea prepares October bill to regulate won-backed stablecoins, aiming to boost financial sovereignty and lead in digital finance. South Korea’s Financial Services Commission (FSC) is set to propose a stablecoin regulation bill in October 2025. The bill will outline rules for issuing won-backed stablecoins, managing collateral, and establishing internal risk controls. According to MoneyToday, Ruling Party legislator Park Min-kyu revealed this plan at a stablecoin hearing on August 18, 2025. The Virtual Asset User Protection Act is one of the main digital asset frameworks, which the proposal by the FSC will be included in the second phase. President Lee Prioritizes Local Stablecoin Market for Monetary Sovereignty The transfer is an indication of South Korea in its effort to boost its digital finance market. The new president, Lee Jae-myung, has secured the stablecoins backed by won as a priority in order to increase monetary sovereignty. He advocated the development of a strong local stablecoin market. Consequently, local banks and payment companies are gearing up to this change. As an example, a number of companies have filed trademarks on stablecoins and are working on the services. This is a great indication of industry support for the government’s vision. Moreover, the bill by FSC will fill the market gaps in crypto. Stablecoins are cryptocurrencies that are anchored to fiat currency, such as the South Korean won. Today, stablecoins are based on the U.S. dollar and prevail worldwide, which further promotes the dominance of the dollar. Conversely, South Korea is keen to encourage stablecoins supported by the won so as to boost its domestic virtual asset sector. The FSC feels that this will increase the financial independence and competitiveness of the global digital economy. Related Reading: Japan Set to Approve First Yen-Pegged Stablecoin | Live Bitcoin News On the other hand, the bill…

South Korea Plans Won-Backed Stablecoin Regulations

South Korea prepares October bill to regulate won-backed stablecoins, aiming to boost financial sovereignty and lead in digital finance.

South Korea’s Financial Services Commission (FSC) is set to propose a stablecoin regulation bill in October 2025. The bill will outline rules for issuing won-backed stablecoins, managing collateral, and establishing internal risk controls. According to MoneyToday, Ruling Party legislator Park Min-kyu revealed this plan at a stablecoin hearing on August 18, 2025. The Virtual Asset User Protection Act is one of the main digital asset frameworks, which the proposal by the FSC will be included in the second phase.

President Lee Prioritizes Local Stablecoin Market for Monetary Sovereignty

The transfer is an indication of South Korea in its effort to boost its digital finance market. The new president, Lee Jae-myung, has secured the stablecoins backed by won as a priority in order to increase monetary sovereignty. He advocated the development of a strong local stablecoin market. Consequently, local banks and payment companies are gearing up to this change. As an example, a number of companies have filed trademarks on stablecoins and are working on the services. This is a great indication of industry support for the government’s vision.

Moreover, the bill by FSC will fill the market gaps in crypto. Stablecoins are cryptocurrencies that are anchored to fiat currency, such as the South Korean won. Today, stablecoins are based on the U.S. dollar and prevail worldwide, which further promotes the dominance of the dollar. Conversely, South Korea is keen to encourage stablecoins supported by the won so as to boost its domestic virtual asset sector. The FSC feels that this will increase the financial independence and competitiveness of the global digital economy.

Related Reading: Japan Set to Approve First Yen-Pegged Stablecoin | Live Bitcoin News

On the other hand, the bill will set strict standards. It will demand that stablecoin issuers uphold safe collateral and have powerful risk management mechanisms. These regulations are set to safeguard the investors and provide stability within the market. A Democratic Party member, Park Min-kyu, stressed the significance of the bill. He added that the FSC had reported to him on the directions of stablecoins. The proposal of the government is in October. This explains how there is a need to regulate this emerging industry.

South Korea Advances Plan for Won-Backed Stablecoin Regulation

The FSC has also been gearing up to this. It has created a virtual asset commission since November 2024 to create a two-phase legislative roadmap. The initial stage was aimed at the general crypto protections, whereas the second is targeted to stablecoins. The commission has been conducting continuous talks to fine tune the bill. The October proposal is therefore likely to be thorough and well-tested.

Conversely, there is the enthusiasm and controversy around the pressure of won-backed stablecoins. Others regard it as a daring move to compete with the world stablecoin markets. Others are concerned with implementation problems, which include collateral security. However, government and industry share one common aim to turn South Korea into the leader in digital finance.

To sum up, the stablecoin bill that will soon be introduced in South Korea will become a milestone on the way of the regulated digital asset market. The country will foster financial sovereignty by encouraging won-backed stablecoins. The FSC proposal is scheduled to take place in October and the environment is ready to change. South Korea is staking a claim to play a major role in the worldwide crypto industry as banks and organizations gear up.

 

Source: https://www.livebitcoinnews.com/south-korea-plans-won-backed-stablecoin-regulations/

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