FSS says stablecoins need old payment law as Korea's crypto bill stalls
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South Korea’s main crypto exchange operator and the Financial Supervisory Service are both pressing for faster stablecoin rules while the country’s specific issuer bill remains unresolved. The discussion centers on whether existing e-payment law can be extended to won-denominated stablecoins and what happens if traders and activity keep moving offshore.
Key claims & sources
What it means
South Korea has been working through how to regulate won-denominated stablecoins, and the issue sits between existing payment rules and a separate bill for issuers. Dunamu is the operator of Upbit, the country’s largest crypto exchange, so its comments matter to the market participants that would have to live with the rules. The Financial Supervisory Service is now trying to fit stablecoins into the current e-payment framework while lawmakers have not finished the dedicated legislation.
For exchanges and traders in South Korea, the immediate question is what rules apply while the issuer bill stays stuck. If the framework stays unresolved, firms like Dunamu have to operate in a shifting policy environment, and users may continue to see activity move to offshore platforms. The practical effect is that domestic trading and stablecoin activity are being forced to wait on a legal structure that has not yet been completed.
The stakes go beyond one company because South Korea is deciding whether to regulate stablecoins through payment law first or through a purpose-built statute later. That choice sets the balance between speed and legal precision, and it also tests how much crypto activity can remain onshore when the rules are incomplete. The tension is between building a clear framework for won stablecoins and letting the market route around delayed domestic regulation.
Still unknown is how South Korea will ultimately divide responsibility between the FSS, the e-payment regime, and the stalled issuer bill. It is also not clear whether the proposed approach will be enough to keep trading volume from leaving for offshore venues. What settles that question will be the final wording of the stablecoin rules and whether lawmakers finish the separate legislation for issuers.
Market reaction i
The total crypto market fell 1.4% in the 4 hours after the first headline, after rising 0.6% in the 2 hours before.
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Has this happened before?
| When | What happened | Figure |
|---|---|---|
| 44 days ago | South Korea weighs crypto market makers after JPYC trades at 4 times peg event | 1 actors in common · 3 news media |