South Korea’s move to legalize crypto stablecoins, announced on June 10, 2025, marks a shift from its historically strict crypto regulations, potentially influenced by the 2021 amendment to the Act on Reporting and Use of Specific Financial Transaction Information, which imposed AML/CTF rules on virtual asset providers, signaling a maturing regulatory framework.
South Korea’s new president, Lee Jae-myung, who is crypto – friendly suggests official endorsement, which could imply a balanced approach to integrating stablecoins like KRW-pegged tokens into the economy, a strategy that could stabilize capital flows amid Asia’s volatile crypto markets.
Research from the Bank for International Settlements (2023) indicates stablecoins can reduce transaction costs by up to 70% compared to traditional cross-border payments, suggesting South Korea’s decision could position it as a leader in APAC financial innovation, challenging the dominance of USD-pegged stablecoins like USDT.
