South Korea Stablecoin Legislation Remains Key Hurdle

[ed]

Lawmakers in South Korea are advancing bills to regulate stablecoins, including the “Value-Stable Virtual Asset Issuance and User Protection Act,” which mandates full reserves, contingency funds, and public blockchain issuance. The Financial Services Commission and Bank of Korea continue to debate jurisdiction, leaving Kakao and Naver-Dunamu to develop projects amid uncertain rules. Regulatory clarity will ultimately determine whether these stablecoins reach the market or remain in testing.

[Abdul Khan]

Clear regulations will decide how fast stablecoins can grow in Korea.

[Nahid Hossen]

Uncertainty in policy is slowing down innovation in the sector.