South Korea proposes two different ways to regulate stablecoins.
Date: 2025-07-30 Author: Oliver Abernathy Categories: IN WORLD
South Korea has developed two alternative legislative initiatives regulating stablecoins - digital assets pegged to the Korean won. The main difference between them is the approach to paying interest to owners of such tokens.
The first bill, introduced by Democratic Party lawmaker Ahn Do-geol, proposes a complete ban on charging interest on stablecoins. According to this initiative, issuers must obtain a license from the Financial Services Commission and have a minimum authorized capital of 5 billion won (approximately $3.6 million). The law also requires tokens to be fully backed by liquid assets. In the event of bankruptcy of the issuer, users must receive compensation within three business days, while the reserve funds cannot be used as collateral or confiscated.
The second initiative, prepared by People's Power Party MP Kim Eun-hye, does not ban interest payments. Instead, it focuses on increasing the transparency of issuers: the submission of technical documentation and white papers, as well as strict control over the composition of reserves, is required to ensure the stability and solvency of issued stablecoins. This version of the bill also provides for licensing and regulates the procedure for the redemption of digital assets with a fixed value.
Both initiatives grant financial regulators expanded powers - in particular, the Bank of Korea will be able to conduct inspections and request the necessary information in order to support monetary policy. In addition, the bills require that all tokens be fully backed by highly liquid assets.
South Korean President Lee Jae-mun advocates a crypto-friendly policy, seeking to strengthen the country's position in the global digital finance market. In his opinion, the development of blockchain and digital assets is an important element of the economic strategy.
However, according to Rich O., regional manager of OneKey, regulatory measures should be balanced. He warns that overly stringent requirements could harm South Korea's competitiveness and limit the private sector's innovative potential.
It is worth noting that the country's largest commercial bank, KB Kookmin Bank, recently applied for several trademarks related to stablecoins and financial services, indicating growing business interest in this segment.
Thus, active work continues in South Korea to form an effective legislative framework for stablecoins that will simultaneously protect users and support the development of digital financial innovation.
