KRW Stablecoin Regulation Bill Debuting in October
Korean regulators will introduce a KRW stablecoin regulation bill in October. This KRW stablecoin regulation will provide guidelines on issuance, collateral management, and internal controls. The Financial Services Commission (FSC) plans the bill as part of Phase II of the Virtual Asset User Protection Act. Lawmaker Park Min-kyu confirmed the timeline after receiving an FSC briefing. The draft aims to reduce reliance on USD-backed stablecoins and institutionalize won-backed tokens. Major banks are also collaborating on a KRW stablecoin slated for launch by late 2025 or early 2026. Separately, Jeju tax authorities have begun freezing crypto assets of around 3,000 individuals who owe $14.2 million in taxes, underscoring stronger enforcement against crypto tax evasion.
Bullish
The clear introduction of KRW stablecoin regulation is likely to boost market confidence and drive adoption of won-backed tokens. Regulatory clarity historically attracts new participants and institutional interest. By reducing reliance on USD-backed stablecoins, Korea can strengthen its domestic crypto ecosystem and encourage local trading volumes. The simultaneous focus on tax enforcement also signals a more transparent and compliant market environment, which typically supports sustainable growth. Overall, these measures are expected to have a bullish impact on both short-term sentiment and long-term development of Korean stablecoins.