South Korea’s Financial Services Commission (FSC) is completely ready to reveal a new account in October aimed at regulating won stablecoins, Money today reported.
The bill is part of the second phase of the Virtual Asset User Protection Act and will lay down rules for issue, collateral management and internal checks.
FSC to submit Stablecoin Bill by October
On a forum about won Stablecoins, Democratic party Lawmaker Park Min-Gyu said he recently received a report from the FSC, with the plans for Stablecoins. The government is expected to submit its proposed legislation in the national meeting around October.
Since last November, the FSC has been working in the second phase of the Virtual Asset User Protection Act, aimed at completing the bill in the second half of this year.
Growing pressure on won-based stablecoins
Won-nominated Stablecoins will be a hot topic in South Korea.
President Lee Jae-Myung promised them during his campaign and legislators his accounts to realize them. While the US is strengthening its dollar-supported Stablecoin system, the crypto industry of South Korea insists on won by won-nominated Stablecoins to stimulate domestic control and reduce dependence on the dollar.
Won-stablecoin Bills Advance in parliament
Various bills on won-based Stablecoins go through the parliament of South Korea.
The most important proposals include the Digital Dasan Framework Act of Min Byung-Dok, the value-stable digital assets law of AHN-Do-Geol and the Payment Innovation Act by Kim Eun-Hye. It is expected that these discussions will get more Momentum as soon as the FSC releases its bill supported by the government, in addition to the proposals of these legislators.
South Korea and Japan racing ahead
Earlier in June, Eight large South Korean Banks REsealed plans to launch a stablecoin linked to the won. A joint venture could be launched by the end of this year or early next year as soon as the legal regulations are in force.
In the meantime, Yonhap Reported that the four large banks, KB Kookmin, Shinhan, Hana and Woori, are considering meetings with Circle President Heath Tarbert, who will visit Korea next week.
Japan also moves on his first Yen -based Stablecoin. Nikkei reported that fintech company JPYC could be approved of the regulations to give this as quickly as possible.
Bok -Gouverneur insists on caution
However, experts have also expressed concern about possible risks.
The Governor of Bank of Korea recently warned About the risks of won -based stablecoins. He says that only licensed banks have to spend the Stablecoin to prevent currency risks. While senior deputy governor Ryoo Sang-Dai said On won-based stablecoins must start with regulated banks and later expand to non-banks.