South Korean gov't outlines draft regulations for won stablecoins

The South Korean government has presented a draft plan for stablecoin regulation to the ruling Democratic Party's Digital Asset Task Force, Blockmedia reported. The proposal suggests legally classifying won-denominated stablecoins as digital payment tokens and would require overseas issuers to establish a local branch for domestic distribution. Furthermore, the plan mandates that issuers of won-denominated stablecoins maintain reserves of at least 100% and prohibits them from paying interest. For stablecoins exceeding a certain scale, consultation with the Bank of Korea would be required. The government also aims to introduce a separate management system for stablecoins with issuance volumes above a specific threshold, designating them as significant digital payment tokens. This development follows an earlier statement from the task force, which had warned it would propose its own bill in January if the government's plan was delayed, arguing that legislative review could not be postponed.