South Korea and Japan Accelerate Stablecoin Market Development
Date: 2025-08-19 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS, IN WORLD
Regulators in South Korea and Japan are taking the adoption of stablecoins more seriously, seeing them as both an opportunity and a threat to their national currencies. According to local media, Seoul is preparing a new bill to regulate digital assets, while Tokyo is close to launching the first stablecoin pegged to the yen. These initiatives are largely a response to the US GENIUS Act, which President Donald Trump signed in July, creating a basic regulatory framework for stablecoins in the United States.
South Korea’s financial service plans to submit a legislative initiative on stablecoins as early as October. According to ruling party spokesman Park Min-gyu, the project will regulate the issuance of coins, collateral rules, and a risk management system.
The country's leading banks — KB Kookmin, Woori, Shinhan, and Hana — are preparing to meet with Circle CEO Heath Tarbert, who will arrive in Seoul in the coming days. Interest in the meeting is due to the growing influence of USDC on the market.
Meanwhile, the Bank of Korea is advocating for stronger control. The central regulator insists on the development of stablecoins backed by the won in order to limit dependence on USDT and USDC, which dominate international settlements. This approach should help reduce the possible outflow of capital outside the country.
Japan's Financial Services Agency (FSA) is ready to approve the first national stablecoin JPYC, issued by a fintech company of the same name from Tokyo, this fall. The company expects to receive the status of a money transfer operator in August and begin token sales a week after registration.
JPYC will be backed by liquid assets, including bank deposits and government bonds. The main areas of application are cross-border transfers, business payments, and use in DeFi projects. According to Nikkei, the company intends to issue stablecoins worth 1 trillion yen (about $6.8 billion) within three years, and several hedge funds have already expressed interest in the project.
Japan prepared for this step back in 2022, when parliament recognized stablecoins as “electronic payment instruments.” Their issuance is allowed only to licensed banks, trust companies, and accredited financial service providers.
Experts note that the growing interest in stablecoins is changing the structure of the market. According to Juan Lopez of VanEck Ventures, companies that integrate digital assets into traditional payment services are becoming key players and are increasingly being considered as targets for mergers and acquisitions.
However, the growing popularity also carries threats. The Hong Kong Securities and Futures Commission warned of an increase in fraudulent schemes after the launch of new rules and advised investors to exercise caution.
Meanwhile, South Korea has already begun to use crypto assets in the fight against tax evasion: authorities in Jeju arrested and confiscated digital coins from tax evaders in August.
The overall course of action of Japan and South Korea clearly shows that Asia is beginning to actively develop national approaches to regulating stablecoins, which is increasing competition with the United States and other major financial centers.
