South Korea Enacts Regulations for Stablecoin Issuance

South Korea has implemented a comprehensive framework for stablecoins, mandating minimum capital reserves, FSC approval, and full user refund guarantees for companies issuing these cryptocurrencies. Companies must maintain a minimum of ₩5 billion (approximately $367,876 USD) in capital, obtain approval from the Financial Services Commission (FSC), and ensure their stablecoin reserves match the coin’s total value. This move establishes South Korea as a pioneer in implementing a fully-fledged legal framework for stablecoins amongst large economies.