South Korea to Roll Out New Rules for Won-Pegged Stablecoins

• FSC bill to mandate full won-backing, collateral rules, and strong internal controls.
• Regulation targets stablecoin risks, boosting investor protection and market stability.
• South Korea’s framework may influence global approaches to stablecoin oversight.

South Korea is moving to regulate its domestic stablecoin market. The country’s top financial regulator, the Financial Services Commission (FSC), is set to release new legislation in October 2025 that will specifically target won-pegged stablecoins as part of its Virtual Asset User Protection Act.

What Will the New Rules Require?

The draft legislation will focus on three main areas: issuance standards, how collateral is managed, and internal control systems. In short, any company issuing a won-pegged stablecoin will have to prove that all of its tokens are fully backed by won reserves. This is a direct move to prevent the kind of solvency risks that could come from mismanaging those reserves.

On top of that, issuers will be required to maintain strict internal control systems to ensure proper oversight of their daily operations and compliance with financial regulations.

A cautious approach. South Korea’s central bank has been carefully exploring this for a while. Here’s our past report.

Why Is This Happening Now?

This decision comes as the use of stablecoins continues to grow in South Korea. While they are seen as essential for providing liquidity in the digital asset market, their reliability depends entirely on the credibility of their underlying assets.

The FSC’s proposal is also part of a broader global effort to create clear rules for the stablecoin market, as policymakers around the world grow more concerned about the risks of unbacked tokens.

In the making: These rules have been in development for some time. Here’s the previous news story on the capital requirements for issuers.

What Will the Impact Be?

The new rules are expected to bring several changes to the market. Investor protection and market stability are at the center of the bill, with strict collateral and reserve requirements aimed at reducing risks. At the same time, issuers will face more defined obligations that could influence how stablecoin services are offered within the country.

The move also shows the government’s intention to integrate stablecoins into the existing financial environment under controlled conditions. By placing stablecoin activity under regulatory oversight, South Korea intends to create clarity for both institutions and individual users.

The bill’s final details will be revealed in October. Moreover, market participants and regulators worldwide are expected to adhere to the rollout, as its plan could impact how other jurisdictions approach stablecoin oversight.