- South Korea legalized stablecoins with clear rules: minimum capital, FSC approval, and full user refund guarantees are now mandatory.
- Companies issuing stablecoins must hold ₩5 billion capital, gain FSC approval, and maintain reserves matching the coin’s total value.
South Korea has established a legal structure for stablecoins. On June 10th, the country’s parliament passed the Digital Asset Basic Act. This law allows businesses to issue stablecoins if they follow specific requirements.
South Korea’s New Stablecoin Rules
- Companies must hold at least 5 billion Korean won (approximately $367,876 USD) in capital.
- Every stablecoin project requires approval from South Korea’s Financial Services Commission (FSC).
- Issuers must hold reserves matching the stablecoin’s value and guarantee users can exchange coins for the underlying asset, like cash.
This action places South Korea among the earliest large economies with a complete legal framework for stablecoins.
U.S. Regulation Faces Hold-Up
While South Korea moves forward, progress on stablecoin regulation in the United States has slowed. A key proposal, the GENIUS Act, aims to create rules for stablecoin issuers at both federal and state levels. It also includes measures to prevent money laundering and fraud.
However, agreement in the U.S. Senate remains difficult. Senator Elizabeth Warren expressed concern, stating, “The bill invites scammers into the market…” Senator Bill
Hagerty countered, arguing, “It’s time we provide the clarity and stability our innovators need.“
Demand for stablecoins globally continues to rise. Industry estimates suggest the market could reach $254 billion in 2025. Within South Korea, stablecoin trading activity on five local exchanges already reached 57 trillion Korean won this year.
Two companies currently control the bulk of the stablecoin market: Tether (USDT), with $150 billion in circulation, and Circle (USDC), with $16 billion. Together, they represent about 85% of all stablecoins in use.
South Korea’s new law provides immediate direction for companies operating there. The ongoing delay in the U.S. leaves questions for businesses and investors awaiting federal rules.
