{"id":26176,"date":"2025-08-18T18:14:56","date_gmt":"2025-08-18T15:14:56","guid":{"rendered":"https:\/\/forklog.com\/en\/south-korea-and-japan-enter-the-stablecoin-race\/"},"modified":"2025-08-18T18:14:56","modified_gmt":"2025-08-18T15:14:56","slug":"south-korea-and-japan-enter-the-stablecoin-race","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/south-korea-and-japan-enter-the-stablecoin-race\/","title":{"rendered":"South Korea and Japan Enter the Stablecoin Race"},"content":{"rendered":"

Regulators in South Korea and Japan are actively creating conditions for the “stablecoin” market. According to local media, the former is preparing<\/a> a new bill, while the latter is close to approving<\/a> its first yen-pegged token.<\/p>\n

These moves are likely a response to actions by the United States. In July, President Donald Trump signed the GENIUS Act<\/a>, establishing a federal regulatory framework for stablecoins to strengthen the global position of the dollar.<\/p>\n

South Korea<\/h2>\n

South Korea’s Financial Services Commission will present a document regulating “stablecoins” in October, according to ruling party representative Park Min Kyu. The initiative will set requirements for issuance, collateral management, and internal risk control systems.<\/p>\n

Additionally, the country’s largest banks \u2014 KB Kookmin, Woori, Shinhan, and Hana \u2014 are considering<\/a> meeting with USDC issuer Circle’s president Heath Tarbert, who will visit South Korea next week.<\/p>\n

Meanwhile, the central bank advocates for stricter regulation of the sector. The regulator has tasked<\/a> the Digital Currency Group to focus on stablecoins pegged to the Korean won to prevent capital outflow and reduce reliance on the dominant USDT and USDC in the segment.<\/p>\n

Japan<\/h2>\n

The Financial Services Agency of the neighboring country (FSA) will approve the issuance of the first yen-pegged stablecoin this autumn. This refers to JPYC from the Tokyo-based fintech company of the same name. The firm plans to register with the FSA as a money transfer operator in August. Token sales will launch a week after registration.<\/p>\n

JPYC will be backed by highly liquid assets, including deposits and government bonds. Potential uses include international transfers, corporate payments, and the DeFi sector.<\/p>\n

Over three years, JPYC plans to issue stablecoins worth 1 trillion yen ($6.78 billion). According to Nikkei, several hedge funds have shown interest in the project.<\/p>\n

A legislative framework already exists in Japan. In 2022, the parliament recognized<\/a> stablecoins as “electronic payment instruments.” Their issuance is permitted only to licensed banks, service providers, and trust companies.<\/p>\n

Stablecoins and Crypto-Fiat Services<\/h2>\n

Juan Lopez, a partner at VanEck Ventures, told Decrypt<\/a> that “stablecoins” enhance the value of payment services. Companies that bridge digital assets and traditional systems are becoming prime targets for mergers and acquisitions.<\/p>\n

According to him, such platforms previously helped clients purchase cryptocurrency. Now they are becoming full-fledged payment providers for everyday operations with stablecoins, such as money transfers and business payments.<\/p>\n

Amid the stablecoin boom, the Hong Kong Securities and Futures Commission warned<\/a> of increasing fraud risks following the introduction of new regulations in the segment. The regulator urged investors to exercise caution, pointing to speculation around companies merely announcing plans to obtain a license.<\/p>\n

In February, journalists reported<\/a> that the FSA would review cryptocurrency legislation, including the possibility of classifying digital assets as financial products “on par with securities.”<\/p>\n

In August, tax authorities in Jeju City, South Korea, initiated<\/a> the process of seizing and confiscating cryptocurrencies from tax evaders.<\/p>\n","protected":false},"excerpt":{"rendered":"

Regulators in South Korea and Japan are actively creating conditions for the “stablecoin” market. According to local media, the former is preparing a new bill, while the latter is close to approving its first yen-pegged token. These moves are likely a response to actions by the United States. In July, President Donald Trump signed the […]<\/p>\n","protected":false},"author":1,"featured_media":26175,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[135,36,974,807],"class_list":["post-26176","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-japan","tag-regulation","tag-south-korea","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"203","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/26176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=26176"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/26176\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/26175"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=26176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=26176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=26176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}