- South Korea’s president introduces a bill enabling stablecoin issuance.
- Legislation aims to prevent national wealth leakage.
- Regulation enhances market confidence in digital assets.
South Korea Moves to Enable Stablecoin Issuance
The South Korean government, led by President Lee Jae-myung, is rapidly advancing legislation to allow domestic firms to issue stablecoins.
New legislation from South Korea seeks to empower local companies to issue stablecoins. The president emphasizes minimizing capital outflows, aiming to solidify the nation’s digital asset market.
President Lee Jae-myung, newly elected in June 2025, has prioritized establishing a regulatory framework for stablecoin issuance. The Digital Asset Basic Act aims to enable qualified firms in South Korea to issue stablecoins under the guidance of the Financial Services Commission.
“We need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas.” — President Lee Jae-myung, President of South Korea [source]
The act requires companies issuing stablecoins to maintain strict financial reserves and undergo FSC approval. The move is expected to bolster trading volumes in Bitcoin, Ethereum, and other digital assets across the domestic market.
By introducing a clear stablecoin framework, South Korea mirrors actions taken in regions like the EU and Japan. This regulatory clarity could lead to increased participation in compliant digital assets.
Market analysts predict that once regulatory guidance is finalized, the engagement of DeFi developers and the broader crypto community will intensify. This may bring a surge in stablecoin issuance and associated blockchain projects within South Korea.
