With the Trump administration’s embrace of virtual assets and the recent passage of the GENIUS Act in the US, the Korean government and National Assembly are moving forward with their own stablecoin policies. Highlighted below are the recent policy changes regarding stablecoins in Korea.
A stablecoin is a type of virtual asset that is linked to a fiat currency or other asset and is designed to maintain a stable value. Stablecoins were developed to address the price volatility of existing virtual assets, while harnessing core strengths of blockchain technology (such as transparency, security and decentralization). As part of its pro-virtual asset policies, the Trump administration in the US announced initiatives to foster the growth of stablecoins, aiming to (i) strengthen the dominance of the US dollar, and (ii) stimulate demand for US government bonds. As a key milestone, the GENIUS Act, the first comprehensive regulatory framework for stablecoins at the US federal level, was enacted on July 18, 2025. Following these developments, there is now active discussion in Korea regarding the development of stablecoin policies.
The new administration under President Jae-Myung Lee has announced plans to introduce KRW-pegged stablecoins as part of its presidential campaign. Meanwhile, the Financial Services Commission (the “FSC”) is preparing the Phase 2 virtual asset legislative bill, which is expected to include measures to regulate stablecoins. Before the bill is enacted, the authorities are also considering the possibility of allowing the issuance of KRW stablecoins through a regulatory sandbox system. In addition, several bills related to stablecoins have recently been proposed at the National Assembly. The key details are outlined below.
|
1. |
New Administration’s Policies to Introduce KRW-Pegged Stablecoins |
-
With ambitions to make Korea a digital asset hub, the new administration pledged during the presidential campaign to prepare measures for stablecoin utilization, including issuing and distributing KRW-pegged stablecoins. In line with this, the FSC is drafting the Phase 2 virtual asset bill, which is expected to introduce measures to regulate stablecoins.
-
Given the anticipated delay in stablecoin legislation, the State Affairs Planning Committee and financial authorities are now exploring a pilot program for KRW-pegged stablecoins through the regulatory sandbox for innovative financial services.
|
2. |
Proposed Bills on Stablecoins Pending at National Assembly |
-
As of September 4, 2025, four bills on stablecoins were submitted to the National Assembly. In particular, bills (2) through (4) discussed below, were proposed as stand-alone bills on stablecoins. This approach was taken due to the considerable delay anticipated before the enactment of the Phase 2 virtual asset legislation, which is expected to comprehensively cover matters involving virtual assets, such as issuance, distribution, disclosure and transaction support for virtual assets (e.g., the bill detailed in part (1) below). A brief summary of the key features of each bill is provided below.
|
(1) |
Bill on the Digital Asset Basic Act (37 lawmakers, including Byoung-duk Min, proposed on June 11, 2025) |
|
– |
Defines stablecoins as asset-linked digital assets and classifies digital assets into stablecoins and other general digital assets. |
|
– |
Comprehensively regulates, among others, the issuance, distribution, disclosure and transaction support for digital assets, including the introduction of an approval system for stablecoin issuers. |
|
(2) |
Bill on the Act on Payment Innovation Using Value-Pegged Digital Assets (10 lawmakers, including Eun-hye Kim, proposed on July 28, 2025) |
|
– |
The legislative intent is to promote innovation in digital asset payments, enhance the credibility of the digital asset market and contribute to the sound development of the national economy. |
|
– |
Defines stablecoins as value-pegged digital assets and regulates matters related to stablecoins, including an approval system for issuers, the preparation and disclosure of white papers and product descriptions, reserve assets, the obligation to repay, other obligations of issuers (such as the obligation to ensure financial soundness, management soundness and safety, and the analysis and assessment of vulnerabilities in distributed ledgers), and the registration of stablecoins issued in countries overseas. |
|
(3) |
Bill on the Act on the Issuance and Distribution of Value-Stable Digital Assets (10 lawmakers, including Do-geol Ahn, proposed on July 28, 2025) |
|
– |
The legislative intent is to lay the institutional foundation for the issuance and distribution of stablecoins and to create a sound digital asset market ecosystem. |
|
– |
Defines stablecoins as value-stable digital assets and regulates matters related to stablecoins, including an approval system for issuers, the obligation to make an advance report upon issuance and to prepare and disclose product descriptions, reserve assets, the obligation to repay, other obligations of issuers (such as the obligation to prohibit payment of interest, the obligation to establish internal control standards and prevent conflicts of interest, and the obligation to secure safety), and the evaluation of eligibility for transaction support. |
|
(4) |
Bill on the Value-Stable Digital Asset Issuance Act (12 lawmakers, including Hyun-jung Kim, proposed on August 21, 2025) |
|
– |
The legislative intent is to create a safe and sound value-stable digital asset market within the system. |
|
– |
Defines stablecoins as value-stable digital assets and regulates matters related to stablecoins, including an approval system for issuance businesses, the obligation to prepare and submit issuance reports prior to issuance, technical requirements such as distributed ledger requirements, reserve assets, the obligation to repay and other obligations of issuers (such as the obligation to prohibit payment of interest, the obligation to disclose issuer information and the obligation to maintain safety). |
Stablecoins are rapidly expanding their role, not only within the virtual asset ecosystem but also into broader digital financial sectors, including those relating to payments and remittances. Prompted by the US’s proactive efforts to promote stablecoins, policy discussions surrounding KRW-pegged stablecoins have surged. Therefore, this should be a welcome news for business operators seeking to issue, distribute or use stablecoins.
Related Topics
#Crypto Asset #Stablecoin #Fintech #2025 Issue 3 #Newsletter
