South Korea’s Financial Services Commission (FSC) is advancing stablecoin regulation, with a recent study commissioned to strengthen anti-money laundering (AML) measures.
The study aims to integrate stablecoins into the regulatory framework for payments and cross-border transfers, ensuring financial security.
This move aligns with global trends, particularly influenced by the U.S. GENIUS Act, and addresses concerns about the Korean won’s role in digital finance.
Specific details of the legislation are still under development, and the balance between innovation and regulation remains a point of discussion.
South Korea to Regulate Stablecoins
South Korea is taking steps to regulate stablecoins, focusing on anti-money laundering (AML) measures to ensure their safe integration into the financial system.
On August 6, 2025, the Financial Intelligence Unit (FIU) under the FSC tasked a study to develop these measures, signaling a proactive approach to managing the growing use of stablecoins in payments and cross-border transactions.
The study will analyze the best global options for stablecoin regulation, looking at frameworks like the U.S. GENIUS Act and the EU’s Markets in Crypto-Assets (MiCA) regulation.
They also assess the current use of stablecoins in South Korea, including their role in payments and cross-border transfers.
| Aspect | Details |
|---|---|
| Regulator | Financial Intelligence Unit (FIU) under Financial Services Commission (FSC) |
| Action Taken | Commissioned study on August 6, 2025 |
| Study Focus | AML measures, stablecoin integration for payments and cross-border transfers |
| Expected Legislation | To be drafted and submitted to National Assembly by end of 2025 |
| Oversight Bodies | Bank of Korea, Ministry of Economy and Finance, FSC |
| Collateral Requirement | Full collateral equivalent to issued stablecoin value |
The FSC’s study will likely review global regulatory approaches and propose measures to ensure stablecoins are secure and compliant. Law is expected to be drafted and presented to the National Assembly by the end of 2025, potentially reshaping South Korea’s cryptocurrency market and influencing global standards.
Stablecoins are the digital currencies linked to stable assets like the Korean won. They are growing in popularity these days because they are more stable than volatile crypto like Bitcoin.
However, people can misuse them for illegal activities, which is why South Korea is focusing on anti-money laundering (AML) and counter-terrorism financing (CFT) regulations. These rules could help make stablecoins more legitimate, encourage wider use, and manage probable risks.
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