The Financial Services Commission of South Korea will present a bill on won-backed stablecoins in October in Seoul. The move comes as the government and lawmakers push for rules to guide issuance, collateral management and internal controls.
The proposal will be folded into the 2nd phase of the Virtual Asset User Protection Act. Lawmakers and industry figures say legal clarity is needed to speed up adoption and to give local projects a path to scale.
What the draft will cover?
Officials say the draft will set out who can issue won-backed stablecoins. It will also require how collateral should be held and how firms must run internal checks.
The goal is to make sure tokens that track the won are backed by liquid assets and that operators meet safety standards. The bill will aim to cover business operators and the rules around transactions.
Also Read: Japan’s FSA Prepares To Approve First Yen-Backed Stablecoin This Autumn
Political support and timing
Park Min-gyu, a Democratic Party lawmaker, said he had received a report from the FSC on the plan. He told a forum that the government expects to send the proposal to the National Assembly in October.
The push follows promises from President Lee Jae-myung during his campaign to push for won-denominated digital coins. With the executive branch on board, lawmakers expect the debate to move faster.
Multiple bills in the mix
Several MPs have already filed their own proposals on the topic. Lawmaker Min Byung-deok has introduced the Digital Dasan Framework Act, which would allow the issuance of won-backed stablecoins and set up a presidential digital asset committee.
Ahn Do-geol has proposed an Act on the Issuance and Distribution of Value-Stable Digital Assets. Kim Eun-hye has offered the Act on Payment Innovation Using Fixed-Rate Digital Assets. These bills show that both the government and the legislature want a clear legal route.
Why the industry wants won coins?
Most stablecoins today are pegged to the US dollar, and the global market for dollar-linked coins has grown rapidly.
Some in South Korea’s virtual asset sector worry that relying on dollar products reduces local control. They argue that won-backed tokens could bring new demand for domestic bonds and open local payment options. Supporters also say clear rules will attract firms and institutional money.
Regional and global context
Regulators across Asia are moving quickly on stablecoins, and some countries are testing new hubs and pilot projects. As we reported a few weeks ago, South Korea’s banks are already planning crypto and stablecoin services in case laws change.
Japan’s Financial Services Agency is preparing to approve a yen-backed stablecoin this autumn, the first domestic fiat-pegged token under regulator oversight.
According to data from Defilama, the global stablecoin market is $277.164 billion, reflecting rising interest from regulators and firms across the region.
Companies abroad have also signalled interest in using stablecoins for faster transfers and simpler currency conversion. All of this adds pressure on Seoul to act.
Pilot projects and tourism use cases
Private firms are already testing real-world services, as UnoCrypto reported a pilot that uses stablecoin-powered ATMs to help foreign tourists withdraw cash.
The project, led by blockchain firm DaWinKS together with the Kaia DLT Foundation, aims to let visitors convert USDT into local currency at an ATM. If pilots like this work, they could show a clear use case for token-based payments.
What to expect next?
Once the FSC releases the government bill, formal talks in the National Assembly should begin. Committees will debate the technical rules and how they fit into existing financial law.
Lawmakers who filed bills will press their own ideas, and industry groups and banks will also try to shape the final rules. The process could take months, but the October timetable makes a clear start.