South Korea is preparing a stablecoin bill, with the Financial Services Commission (FSC) expected to submit it in October 2025.
Local outlet MoneyToday reported that the FSC will present the South Korea stablecoin bill as part of the second phase of the Virtual Asset User Protection Act. The stablecoin regulation will include rules on issuance, collateral management, and internal control systems.
Representative Park Min-kyu of the Democratic Party of Korea (DPK) said he was briefed on the bill’s contents.
“The government bill is expected to be submitted to the National Assembly around October,”
Park stated during a policy debate.
The FSC has been drafting the stablecoin framework since 2023 through its virtual asset committee, aiming to provide legal clarity for digital asset service providers in the country.
Won-Backed Stablecoin Gains Policy Support
The South Korea stablecoin bill is designed to promote a won-backed stablecoin and reduce reliance on dollar-pegged stablecoins.
The initiative gained momentum after President Lee Jae-myung pledged support for a won-pegged stablecoin during his election campaign.
Lawmakers have submitted several proposals linked to stablecoin regulation- Representative Min Byung-deok introduced the Digital Asset Basic Act, Representative Ahn Do-gul proposed the Act on the Issuance and Circulation of Value-Stable Digital Assets, Representative Kim Eun-hye presented the Act on Payment Innovation Using Value-Pegged Digital Assets.
Industry representatives argue that a won-backed stablecoin would support financial stability and reduce dependence on U.S. stablecoin tokens, which dominate the global market.
South Korean Banks Work on Won-Pegged Stablecoin
stablecoin. At the time, they explained that the project’s goal was to protect the domestic currency as the influence of the U.S. dollar continued to grow.
In June 2025, several major South Korean banks announced that they were developing a won-pegged stablecoin. They explained that the project aimed to protect the domestic currency as the U.S. dollar continued to dominate global finance.
The banks also indicated that they would launch the won-backed stablecoin by late 2025 or early 2026. This schedule directly aligns with the introduction of the South Korea stablecoin bill, which the Financial Services Commission (FSC) plans to submit in October 2025. The bill will create a regulatory framework that defines how stablecoins can operate legally in the country.
At the same time, data from RWA.xyz showed the size and composition of the global stablecoin market. As of Sunday, the market cap stood at $266.7 billion. Out of this total, $266.3 billion came from dollar-backed stablecoins, which represented 99.8% of the market. In contrast, non-dollar stablecoins accounted for only 0.2%, showing how limited their presence remains compared to U.S. dollar tokens.
Stablecoin Bill Follows U.S. Efforts
The South Korea stablecoin bill comes as the United States advances its own stablecoin regulation. Both nations are working to set rules on the issuance and use of stablecoins tied to fiat currencies.
By including stablecoin regulation in the Virtual Asset User Protection Act, the FSC is ensuring that the legal foundation aligns with broader global efforts. The FSC stablecoin bill will serve as a second-phase measure in the country’s crypto oversight framework.
Alongside preparing the stablecoin bill, South Korea has tightened oversight of crypto tax evasion.
On Monday, tax officials in Jeju City started freezing and seizing digital assets belonging to individuals accused of avoiding taxes.
Authorities are investigating nearly 3,000 residents with tax arrears totaling $14.2 million. Officials are checking whether those individuals own cryptocurrencies that can be seized to cover outstanding payments.
