South Korea Moves to Regulate Won-Based Stablecoin with New FSC Bill

South Korea's Financial Services Commission (FSC) is preparing to introduce a new bill in October targeting won-denominated stablecoins. The legislation, part of the second phase of the VIRTUAL Asset User Protection Act, will establish guidelines for issuance, collateral management, and internal controls.

Democratic Party lawmaker Park Min-gyu confirmed the FSC's plans at a recent forum. The government aims to submit the proposal to the National Assembly by October, following months of development since November 2023.

Won-pegged stablecoins are gaining political traction, with President Lee Jae-myung championing the concept during his campaign. The push reflects South Korea's desire to assert domestic control over digital assets and reduce dollar dependency, particularly as U.S. dollar-backed stablecoins dominate global markets.

Multiple legislative proposals are currently advancing through parliament, including Min Byung-deok's Digital Dasan Framework Act. The moves signal South Korea's strategic positioning in the evolving stablecoin landscape.