- South Korea prepares landmark stablecoin bill to reshape digital finance.
- Major banks eye Circle talks as regulation nears parliamentary submission.
- Tech giants join lawmakers, pushing collaboration in stablecoin innovation.
South Korea is preparing to take a decisive step in digital finance with the introduction of a stablecoin regulation bill. According to local reports, the Financial Services Commission (FSC) is expected to submit the legislation to the National Assembly in October, setting rules for issuance, collateral management, and risk controls.
Park Min-kyu, a lawmaker in the Ruling Party, said the FSC informed him of the plan in one report. The bill will be included in the country’s second digital asset framework, which President Lee Jae Myung has advocated as a key to enhancing monetary sovereignty. His administration has supported the development of a local currency-pegged stablecoin market, and banks have already begun to file associated trademarks.
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Banks and Tech Giants Move Ahead
Representatives from major players, including internet giants Naver and Kakao, joined lawmakers in recent discussions on stablecoins. Some of them requested a single network among the banks and the payment corporations to facilitate interoperability and innovation.
Meanwhile, the four biggest banks in South Korea, KB Kookmin, Woori, Shinhan, and Hana, are contemplating a meeting with Circle’s president, Heath Tarbert. Circle, the USDC issuer, has become one of the main advocates of stablecoin adoption, and its negotiations with Korean banks may define its further evolution.
Japan, its neighbor, is also making progress in this direction, with a fintech company called JPYC, which is said to be nearing approval of its stablecoin in yen. Regional competition emphasizes the need for South Korea to finalize its own rules.
Balancing Growth With Oversight
International momentum is also adding pressure. In the United States, President Donald Trump recently signed the Genius Act, which lays out a federal framework for stablecoins to strengthen the dollar’s position worldwide.
Nevertheless, the South Korean central bank is cautious about being too hasty. Governor Lee Chang-yong indicated that the issuance of won-pegged stablecoins should be left to licensed banks. He warned that liberalizing the market by making it too open may disrupt the country’s strict foreign currency controls.
The future of digital currency in South Korea is likely to be established by the country’s stablecoin bill. With banks considering talks with Circle and tech giants joining the push, the stage is set for significant changes in its financial sector.
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