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The Financial Services Commission in South Korea (FSC) is about to finish creating rules for stablecoins. It is planned that the new law will be submitted to Parliament before the end of the year and will bring with it several important changes. Most importantly, stablecoin holders will no longer be paid interest. This is done in order to clearly separate digital payment instruments from the usual banking services.

The new rules will also change the roles of participants in the digital asset market. Only banks will be able to issue stablecoins, and crypto exchanges and fintech companies will help them as technology partners. It is believed that this will increase the reliability of stablecoins, as trusted financial organizations with licenses will be involved.

To become an issuer, you need to meet serious financial criteria. The most important thing is to have a capital of at least 5 billion won (that's about $3.52 million). Plus, it is necessary to provide reserves covering all issued stablecoins, and even with a margin of more than 100%. And these reserves should be invested in liquid assets, such as government bonds.

The South Korean Financial Services Commission has clearly taken matters seriously, trying to fit digital assets into the framework of existing rules. The ban on interest accrual, the concentration of issuance in the hands of banks, and strict reserve requirements all create a new picture in the stablecoin market. These measures are aimed at protecting investors from risks and making the digital asset market more stable and predictable. And it is quite possible that this approach will affect how cryptocurrencies will be regulated worldwide.