South Korea is getting ready to set rules for stablecoins. The Financial Services Commission (FSC) plans to submit a stablecoin bill to the National Assembly in October. The bill will be an important part of the country’s second set of digital asset laws now being developed. The decision shows the government’s strong interest in creating a safe and well-structured market for stablecoins. South Korea Plans Stablecoins Rules to Boost Trust and Innovation The proposed legislation is similar to the U.S. GENIUS Act on stablecoin rules signed into law in June. The upcoming bill will focus on regulating how stablecoins are created and maintained. It will also require that every stablecoin is backed by reliable collateral to protect users from financial loss. In addition, issuers will need to put in place strong internal systems to manage risks, both financial and technical. These measures are intended to build trust in stablecoins, prevent misuse, and, at the same time, encourage innovation in South Korea’s digital finance sector. The country’s newly elected president, Lee Jae Myung, has promised to support the growth of a local stablecoin market pegged to the Korean won. His vision is to use stablecoins as a tool for financial sovereignty in the digital age. Following this direction, local banks and payment companies have already started preparing. Some have applied for stablecoin trademarks, while others are developing services that will run on digital currencies once the legal framework is ready. Industry Leaders Join Policymakers in Stablecoin Push On Monday, lawmakers, major banks, and leading internet companies such as Naver and Kakao gathered for a discussion on stablecoins . Several participants stressed the need for cooperation between banks and payment companies. They argued that a joint effort is necessary to build an ecosystem that is both innovative and easy for users to adopt. KB Kookmin, Woori, Shinhan, and Hana, which are the four largest South Korean banks, are also looking at global partnerships. A local news outlet reported that they may meet with Circle’s President, Heath Tarbert, during his visit next week. South Korea is not acting alone. In Japan, fintech company JPYC is reportedly expecting to receive approval to issue the country’s first yen-based stablecoin. This shows that the stablecoin race is quickly spreading across Asia, with governments and companies competing to secure leadership in digital currency innovation. Central Banks Urge Caution on Stablecoin Risks Despite the global stablecoin push, South Korea’s central bank remains cautious . Governor Lee Chang-yong says only licensed banks should issue won-based stablecoins. He warned that too many issuers could weaken currency controls and risk the financial system. In the United States, several U.S. banking associations, led by the Bank Policy Institute (BPI), have also called on Congress to tighten new stablecoin laws to prevent issuers from indirectly offering interest or yields to holders. BPI warns that if this loophole goes unchecked , stablecoins could lure trillions of dollars away from banks. The post South Korea to Introduce Stablecoin Bill in October appeared first on TheCoinrise.com .
