South Korea to have cryptocurrency regulatory framework ready in October

South Korea’s bill for the creation of a stablecoin backed by the won, the country’s currency, could be ready in October.

According to local media outlet MoneyToday on Monday, August 18, “the Financial Services Commission (FSC) will unveil the bill as part of the second phase of the country’s Virtual Asset User Protection Act.”

In this regard, Representative Park Min-kyu of the Democratic Party of Korea (DPK) noted that the FSC issued a report “on the policy direction for stablecoins” and the government bill is expected to be submitted to the National Assembly in October.

This legal instrument should establish “the requirements for issuance, collateral management, and internal control systems for stablecoins.”

The Asian country is also seeking to reduce dependence on dollar-pegged stablecoins by issuing a won-backed stablecoin. The idea has been in the works since 2023. Recently, “several lawmakers have since submitted related proposals, including the Digital Asset Basic Law by Representative Min Byung-deok of the Democratic Party, the Act on the Issuance and Circulation of Stable Value Digital Assets by Representative Ahn Do-gul of the Planning and Finance Committee, and the Payment Innovation Act Using Value-Pegged Digital Assets by Representative Kim Eun-hye of the People’s Power Party.”

M.Pino

Source: cointelegraph

(Reference image source: kim giseok on Unsplash)

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