South Korean President Advocates Stablecoin Regulation to Boost Domestic Crypto Market
South Korean President Lee Jae-myung has introduced a legislative proposal focused on regulating stablecoin issuance, with the goal of strengthening the country’s crypto ecosystem.
The bill is designed to retain national wealth by creating a regulated, won-backed stablecoin market. Oversight will fall under the Financial Services Commission (FSC), ensuring transparency and encouraging competition within the digital finance space.
Key provisions of the proposal include a requirement for at least 500 million won in equity capital and mandatory approval from the FSC for any entity issuing stablecoins. President Lee underscores the need for local stablecoin infrastructure to reduce capital outflow and foster wider digital currency adoption across South Korea.
Entities central to the bill include the Democratic Party and the FSC, signaling a major shift in the country’s regulatory framework. President Lee has emphasized the strategic value of stablecoins, referencing international trends and their growing relevance in financial policy.
The legislation could also indirectly spur increased investment in Bitcoin and Ethereum, particularly with expectations surrounding Bitcoin ETFs. It further aims to tighten investor protections by cracking down on fraudulent schemes and reinforcing compliance measures.
“We need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas.” – Lee Jae-myung, President of South Korea
Financially, the bill would require crypto firms to maintain capital reserves and adhere to strict regulatory standards. Proposals are also underway to allow pension fund investments in cryptocurrencies, broadening institutional exposure and supporting fiscal diversification.
In the future, this action may lead to a spike in DeFi activity and draw attention from institutions, while the introduction of won-based stablecoins might increase onshore liquidity and propel the expansion of the South Korean digital asset market.