South Korea considers new rules giving banks control of stablecoins

South Korea has moved closer to introducing bank-led rules for Korean won stablecoins, with a new digital asset bill expected this month as financial institutions and fintech companies compete for roles in issuing and distributing the tokens. South Korea's proposed digital asset legislation could require bank-majority consortiums to issue won-denominated stablecoins domestically. Financial regulators are preparing legislation covering stablecoin issuance, distribution, payment services and consumer protection requirements. VIDEX CEO Ryu Hong-ryeol urged lawmakers to permit qualified fintech firms to issue won stablecoins. South Korea's competition regulator is reviewing the planned merger between Upbit operator Dunamu and Naver Financial. Banks and payment providers are testing stablecoin infrastructure while awaiting final rules governing commercial issuance.

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