- South Korea plans to legalize won stablecoins to reduce dependence on foreign tokens.
- The law requires capital reserves and approval from the financial commission before issuance.
- Tensions remain as the central bank wants control over digital tokens and monetary policy design.
South Korea’s newly elected President, Lee Jae-myung, is taking swift action to legalize won-backed stablecoins for local business issuance. His Democratic Party introduced the Digital Asset Basic Act to strengthen financial sovereignty and provide a regulatory foundation. This initiative aligns with campaign promises and expands the nation’s evolving crypto framework for broader blockchain development.
A President’s Promise Becomes National Crypto Policy
President Lee Jae-myung, elected after a snap vote on June 3, has wasted no time implementing his digital asset strategy. His proposal builds on the Virtual Asset Investor Protection Act, expanding beyond investor safety toward full-scale ecosystem development.
According to sources, the new bill requires companies to maintain a capital reserve of at least 500 million won before issuing stablecoins. Additionally, issuers must obtain approval from the Financial Services Commission and maintain adequate reserves for user redemptions.
At a press event, Democratic Party member Min Byeong-deok confirmed that the law would become the legal core of South Korea’s digital economy. Notably, Min served as the head of the president’s digital asset campaign committee and has advocated for the early integration of blockchain technology.
Local Stablecoins Aim to Reduce Foreign Exposure
One of the proposal’s primary goals is to minimize dependence on foreign-backed stablecoins such as USDT and USDC. The President said a won-based stablecoin market would help prevent wealth from leaving the country through external digital assets.
South Korea’s stablecoin market remains highly active, with over 57 trillion won in trading volume in the first quarter of 2025. Major exchanges recorded heavy traffic in USD-based stablecoins, which have long dominated domestic crypto trading pairs.
Consequently, by enabling local alternatives, the administration hopes to build a digital economy centered on the Korean won rather than foreign currencies.
Related: South Korea’s Election Centers on Crypto ETF and Market Reforms
Regulatory Clarity Meets Central Bank Resistance
The bill also outlines strict compliance rules around issuance, fraud prevention, and asset backing, offering clearer regulatory direction. These conditions aim to increase transparency and promote competition across crypto markets.
Meanwhile, the Bank of Korea has raised concerns that private stablecoins could undermine state procedures from a monetary perspective. The central bank would rather have a national digital Won under its direct control. As policy control becomes the core issue, a question arises: who should oversee the task of further developing digital currency in South Korea?
