South Korea Drafts Stricter Regulations to Secure its Stablecoin Market

South Korea's Financial Services Commission (FSC) is preparing to introduce a comprehensive regulatory framework for stablecoins, with a draft slated for submission to the National Assembly in October. The proposed rules will address issuance protocols, collateral management, and risk control systems, marking a significant step in the country's evolving cryptocurrency oversight.

The draft aims to clarify issuer obligations and establish safeguards for collateral and risk monitoring. Park Min-kyu, a ruling party official, confirmed the timeline following a meeting with industry stakeholders. Participants included major tech firms like Naver and Kakao, alongside banking representatives, with some advocating for enhanced payment-banking network integration to drive innovation.

This regulatory push aligns with President Lee Jae Myung's pledge to strengthen the domestic stablecoin ecosystem. The MOVE follows similar regulatory developments in neighboring Japan, underscoring a regional trend toward tighter oversight of digital assets.