Korea Sets Stage for Stablecoin Regulation Review This November

The Financial Services Commission (FSC) of South Korea has announced that it will review the Digital Asset Framework Act in November, marking the next phase of cryptocurrency lawmaking in the country. The framework is an expansion of the Virtual Asset User Protection Act, which focuses on user protection and unfair trading.

The new framework will regulate issuance, disclosures, service providers, and stablecoin rules, with a key focus on issuer eligibility requirements. The Bank of Korea supports a bank-centered model for issuing won-denominated stablecoins, tied to monetary policy, payment systems, and financial stability issues.

Recent developments in US stablecoin regulation have added pressure to the Korean debate, with some lawmakers calling for faster action to establish domestic rules before international stablecoins enter the market. The FSC plans to finalize the second phase of stablecoin regulations by 2026.