As the U.S. finalizes key regulations for its stablecoin framework, set to take effect in January 2027, South Korea lags behind, having yet to submit a government proposal for a digital asset basic law that would pave the way for a Korean KRW stablecoin. The global stablecoin market has grown by over 16% in the 15 months since the U.S. enacted the GENIUS Act, highlighting the widening regulatory gap between the two nations.
The GENIUS Act and the Office of the Comptroller of the Currency’s (OCC) final regulations will come into force on January 18. These rules establish detailed criteria for stablecoin issuers, covering reserve asset management, liquidity requirements, issuance and redemption processes, risk management, and oversight.
Stablecoins, digital assets designed to maintain a stable value relative to fiat currencies like the dollar, have expanded beyond crypto trading into payments and international remittances, driving market growth.
On October 21, the OCC unveiled its final regulations to implement the GENIUS Act, approximately 15 months after President Donald Trump signed the bill into law.
The regulations prohibit issuers from paying interest to stablecoin holders. The applicability of rules to third-party reward programs will be assessed case-by-case. The OCC opted against presuming indirect interest payments through affiliates or third parties, instead focusing on the issuer’s involvement and the economic substance of transactions to determine regulatory compliance.
Meanwhile, the Securities and Exchange Commission (SEC) is pursuing regulatory exemptions for tokenized stock trading, and the Commodity Futures Trading Commission (CFTC) is developing rules to integrate digital asset trading into existing financial market oversight frameworks.
In contrast, South Korea’s Financial Services Commission, despite announcing plans for a digital asset basic law by year-end, has yet to submit a proposal to the National Assembly.
The Bank of Korea supports private won stablecoin introduction but favors a bank-led issuance model.
Financial Services Commission Chairman Lee Ok-yeon recently stated that digital asset legislation discussions are in their final stages.
Industry experts warn that delays in South Korea’s regulatory framework could allow foreign operators to dominate the domestic payment and remittance markets.
Professor Kang Hyung-koo from Hanyang University emphasizes the need for swift legislation with clear regulatory standards, advocating for a framework that encourages diverse market participation and innovation.