FSC Initiates Overhaul of Stablecoin AML Regulations…Full-Scale Analysis of Foreign Legislative Cases

The Financial Services Commission (FSC) has begun analyzing overseas legislative cases related to stablecoins and frameworks for Anti-Money Laundering (AML).

According to the industry on the 7th, the Korea Financial Intelligence Unit (KoFIU) of the FSC commissioned the “Research on Legislative Processes for Virtual Asset Phase 2 Law and Improvements to the AML System for Stablecoins” on the 6th. The research period runs until December 12, with a budget of ₩50,000,000.

The FSC anticipates that stablecoins, once incorporated into regulatory frameworks, will be used as means of payment and for cross-border remittances. In this study, the FSC plans to overhaul the applicable AML and Countering the Financing of Terrorism (CFT) regulatory frameworks throughout the issuance, circulation, and redemption processes of both domestic and foreign stablecoins.

A key focus will be a detailed analysis of the regulatory differences between stablecoins issued abroad and those issued domestically. Based on the results, the government intends to incorporate provisions related to stablecoins into the “Virtual Asset Phase 2 Law.”