South Korea’s New Stablecoin Rules Aim to Boost Domestic Crypto Market

South Korea is set to revolutionize its crypto landscape with new regulations for stablecoins, aiming to promote domestic development and reduce reliance on USD-backed options. The Financial Services Commission (FSC) will enforce compliance requirements, ensuring issuers have a minimum equity reserve of 500 million KRW when issuing stablecoins within the country. This move is part of a broader shift towards local currency stability in global crypto markets. The regulations could significantly impact trading volumes by favoring KRW-backed stablecoins over USD-based options, potentially boosting liquidity and economic sovereignty while aligning with international trends.