Catenaa, Wednesday, August 20, 2025-South Korea’s Financial Intelligence Unit is reorganizing anti-money laundering protocols in preparation for stablecoin legislation, aiming to strengthen oversight of issuers and operators.
The regulator plans to complete research via external contractors by December and draft guidelines to address entry restrictions, asset security, and reporting standards.
The FIU is expected to recommend updates to the Specific Financial Information Act, signaling significant changes for stablecoin operators.
The regulator currently monitors domestic crypto exchanges and enforces AML compliance. Its reorganization indicates it anticipates a leading role in regulating stablecoin activity, despite ongoing government discussions about merging the Financial Services Commission with other financial authorities.
Stablecoin bills are under review at the National Assembly, but lawmakers have yet to finalize details such as potential lending services.
Experts warn that the lack of a clear legal definition for stablecoins increases money laundering risks, echoing concerns from the Financial Action Task Force and other international bodies.
Major South Korean banks and tech firms are already positioning themselves for stablecoin adoption, registering trademarks and establishing dedicated business units.
Companies including Kakao and Naver are expected to leverage their existing payment and web service networks to expand into the stablecoin sector once legislation is finalized.
The FIU’s December report is anticipated to form the foundation for AML measures in the virtual asset industry, signaling South Korea’s effort to catch up with other countries that have already implemented stablecoin regulatory frameworks.
