출처: Block Media
Legislative Focus Intensifies on Korean Stablecoins Amid Depegging Crisis and Bithumb Fallout
The spotlight is firmly on South Korea’s regulatory framework as lawmakers and financial authorities tackle stablecoin stability and market risks during this year's parliamentary audit. With Korean Won-backed stablecoins gaining traction, the audit underscores an urgent need for policy clarity and reform in the digital asset ecosystem.
In a notable move, Dunamu CEO Oh Kyung-seok was removed from the final witness list, signaling a shift toward policy-centric discussions over individual accountability. Key topics include stablecoin regulation and exchange risk management, driven by the backdrop of Tether (USDT) depegging issues and Bithumb’s liquidation events.
Legislative Audit Targets Financial Regulators
South Korea’s National Assembly is conducting an intensive parliamentary audit of financial authorities, running until October 28. Key sessions include the Financial Services Commission (FSC) on October 20 and the Financial Supervisory Service (FSS) on October 21, culminating with a comprehensive financial sector evaluation on October 28.
With regulatory reform dominating the agenda, discussions are expected to center on institutionalizing stablecoins and advancing Phase 2 of the Digital Asset Act. Crucially, this will include unveiling government proposals by month’s end aimed at establishing prerequisites for issuing Korean Won-backed stablecoins. These proposals will also address collateral management standards and internal controls.
This audit marks a pivotal opportunity to publicly analyze the regulatory direction being set by financial authorities. Opinions voiced during these sessions could shape the trajectory of stablecoin adoption and digital finance innovation.
Critical Issues in Stablecoin Regulation
Lawmakers and regulators are facing several pressing challenges tied to integrating Korean Won-based stablecoins into the broader financial system. Among them are:
- Impact on monetary policy and financial stability – How stablecoin adoption might disrupt existing frameworks.
- Legal and institutional accountability – Determining clear roles in payment infrastructure.
- Oversight authority conflicts – Resolving disputes between the FSC and the Bank of Korea (BoK).
Concerns about stablecoin adoption affecting market stability and monetary policy have amplified scrutiny during regulatory discussions. Stablecoins’ role as a payment method further complicates the landscape, requiring meticulous delineation of responsibilties among banks, fintech firms, and issuers.
Currently, stakeholders—including banks, big tech companies, and issuers—remain divided on their roles in stablecoin issuance and oversight. Additionally, disagreements between the FSC and BoK on supervisory authority highlight the need for consensus-building during framework drafting.
Collaborative Efforts Toward Stability
According to Yoon Min-seop, Adjunct Professor at Soongsil University, technological safeguards must complement a trustworthy collaborative environment for Korean Won-based digital currencies. He emphasizes the collective responsibility of banks, tech companies, and regulators to ensure seamless stablecoin integration.
Despite advancements in digital finance, vulnerabilities in stablecoin liquidity have emerged in the domestic market. The depegging crisis of Tether (USDT) is a recent example, with sharp price fluctuations exposing weaknesses in stablecoin price stability and risk management protocols.
On October 11, at 6:22 a.m., Bithumb recorded an unexpected Tether price surge to 5,732 KRW. This came after market turbulence caused by former U.S. President Donald Trump's tariff announcements, which led futures market participants to secure collateral using Tether. Limited domestic liquidity exacerbated the situation, triggering a rapid price rally.
Fallout from Bithumb Liquidation
The price spike caused forced liquidations for Bithumb’s margin trading users. Investors leveraged Tether against collateralized assets like Bitcoin (BTC), Ethereum (ETH), and Korean Won, resulting in automatic repayments as Tether’s skyrocketing value exceeded collateral thresholds. Liquidations during this period reportedly reached 1.16 billion KRW.
An official from the National Policy Committee stated that financial authorities are investigating the Bithumb incident to identify critical issues. “Given Tether’s depegging situation, regulatory reforms aimed at enhancing stablecoin stability must be prioritized during the audit,” the official asserted.
Additionally, measures to enforce travel rule compliance and mitigate illicit activities involving stablecoin transactions are under review. Authorities are focusing on market stability and consumer protection as they formulate actionable improvements to the regulatory framework.
Balancing Innovation and Consumer Protection
This year’s parliamentary audit highlights a transformative phase for South Korea’s financial sector. As lawmakers seek to refine digital asset regulations, they must strike a delicate balance between fostering innovation, maintaining market integrity, and safeguarding consumers.
With stablecoins poised to revolutionize payments and financial transactions, South Korea’s regulatory efforts are crucial in shaping the future of digital finance, ensuring resilience, and addressing risks tied to these emerging financial tools.
