South Korea’s push for stablecoin regulation is heating up, with a whirlwind of activity among lawmakers, central bankers, and industry leaders. As of late August 2025, the nation finds itself at a critical juncture, eager to carve out its niche in the rapidly evolving digital currency landscape. The urgency is palpable as local cryptocurrency players clamor for clear guidelines to remain competitive on the global stage.
The Regulatory Race
In the corridors of power, South Korean lawmakers are fast-tracking stablecoin legislation, aiming to finalize a comprehensive framework by the end of the year. This legislative sprint is fueled by a desire to establish South Korea as a leader in digital currency innovation, while also safeguarding its financial system. According to insiders, the proposed regulations are expected to cover a wide array of issues, from consumer protection to anti-money laundering measures.
“South Korea can’t afford to lag behind,” says Jin-ho Park, a fintech analyst based in Seoul. “With countries like the US and China already making strides in digital currency regulation, a well-defined legal framework here is crucial.” Park’s sentiments echo a broader industry concern: without swift action, South Korean companies might lose ground to foreign competitors who operate under clearer regulatory regimes. This urgency is further underscored by recent meetings between South Korea’s top banks and stablecoin giants like Tether and Circle, as reported in South Korea’s Top Banks Said to Meet Tether, Circle on Stablecoin Partnerships: Report.
Central Bank’s Role
Meanwhile, the Bank of Korea is making its own moves. It has been actively promoting the idea of bank-issued tokens, aiming to harness the benefits of stablecoins while retaining control over monetary policy. This initiative aligns with the central bank’s broader strategy to integrate digital currencies into traditional financial systems.
“The central bank sees an opportunity to issue tokens that reflect the stability of the Korean won,” notes Eun-ji Kim, a digital currency strategist. “It’s about maintaining sovereignty over our currency while participating in the global digital economy.” However, the bank’s approach is not without its skeptics. Some industry experts question whether bank-issued tokens can truly compete with established global players like Tether or USD Coin.
Industry’s Call for Clarity
On the ground, industry stakeholders are vocally demanding clarity. Startups and established firms alike are keen to understand the rules of the game, especially as they navigate the complexities of stablecoin issuance and trading. Many argue that without clear regulations, innovation may be stifled, and South Korea could miss out on potential economic benefits.
“We need a regulatory environment that supports growth and innovation,” asserts Min-kyu Lee, CEO of a blockchain startup. “Right now, there’s too much uncertainty, and that slows us down.” Lee’s concerns highlight a common theme in the industry: the need for a balanced approach that fosters innovation while ensuring compliance. This sentiment is mirrored in the EU’s recent reevaluation of its digital currency strategy following the US’s stablecoin law, as detailed in U.S. Stablecoin Law Jolts EU Into Rethinking Digital Euro Strategy: FT.
Looking Ahead
As South Korea races to finalize its stablecoin regulations, the world is watching. The decisions made in the coming months could have far-reaching implications, not just for the domestic market but also for international players seeking to enter the Korean market.
But questions remain. Can South Korea strike the right balance between innovation and regulation? Will bank-issued tokens gain traction in a market dominated by established global players? And most importantly, how will the regulatory landscape evolve as technology continues to advance?
The stakes are high, and the answers are yet to be written. As South Korea navigates this uncharted territory, one thing is clear: the future of stablecoins in Korea is anything but static.
Source
This article is based on: Stablecoin in Korea: Industry Wants Regulation to Come Faster
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
