South Korea Greenlights Stablecoin Boom—Crypto Stocks Surge on Regulatory Breakthrough

Seoul shakes up the digital economy with a landmark bill—finally giving stablecoins legal runway. Traders cheer as local crypto stocks rip double-digits.

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South Korea’s President Follows Through on Crypto Promises

The proposal comes just a week after Lee, a progressive politician known for his pro-crypto stance, won the presidential election. His administration is moving swiftly to implement campaign pledges aimed at modernizing South Korea’s regulatory framework for digital assets.

Still, the initiative faces pushback from the Bank of Korea, which has expressed concerns about non-bank entities issuing stablecoins. Governor Rhee Chang-yong has argued that such assets could undermine monetary policy, and insists the central bank should lead any effort involving a won-pegged digital currency.

Under the proposed law, all asset-linked tokens, including stablecoins, would require approval from the Financial Services Commission, South Korea’s top financial regulator.

South Korea edges closer to legalizing tokenized securities as President Lee takes office. Bills to enable STOs for real estate, art & more could soon pass amid bipartisan support. #SouthKorea #Crypto #Tokenization https://t.co/yYjlzqiRyh

South Korea Joins Race to Regulate Stablecoins

South Korea under its new president has joined the race of other major nations moving fast to regulate fiat-pegged digital assets and the overall crypto industry. Hong Kong has already passed a bill regulating stablecoins that goes into effect on 1 August, with first HKD-pegged stablecoin expected to be issued later this year. The U.S is also moving ahead with its Genius Act, with the Congress set to vote on the bill Wednesday. Stablecoins continue to gain popularity as major banks including JP Morgan and Deutsche Bank explore the digital asset instrument.