South Korea to Propose Stablecoin Regulation Bill in October

South Korea is advancing legislation to establish its first legal framework for stablecoins, with the Financial Services Commission (FSC) set to submit a government bill to the National Assembly in October. The proposal, part of the second phase of the VIRTUAL Asset User Protection Act, aims to regulate won-backed stablecoins by setting standards for issuance, collateral management, and internal controls.

Democratic Party lawmaker Park Min-kyu confirmed the timeline after an FSC briefing, signaling bipartisan momentum. The initiative follows President Lee Jae-myung's campaign pledge to support a won-pegged stablecoin, with multiple legislative proposals already in motion.

Regulators emphasize the growing role of stablecoins in payments and trading, underscoring the need for clear rules. The FSC's virtual asset committee has been refining the framework since 2023, reflecting heightened policy focus on digital assets.