South Korea is set to establish a regulatory framework for a won-backed stablecoin, with the Financial Services Commission (FSC) planning to introduce a government bill in October. According to MoneyToday, this initiative is part of the second phase of the Virtual Asset User Protection Act. Representative Park Min-kyu of the Democratic Party of Korea mentioned that the FSC briefed him on the stablecoin policy direction, with the bill expected to be presented to the National Assembly soon. The legislation will likely detail requirements for issuance, collateral management, and internal controls for stablecoins. The FSC has been developing this framework since 2023 to provide clearer guidelines for crypto service providers. As the U.S. intensifies its stablecoin legislation, South Korea aims to catch up. Local stakeholders emphasize the need for a won-pegged stablecoin to lessen dependence on dollar-based tokens. Additionally, South Korean tax officials are cracking down on crypto users evading taxes, freezing assets of those suspected of tax dodging. Read more AI-generated news on: https://app.chaingpt.org/news