The story so far
written Oct 2What is happening
South Korean regulators are drafting rules to govern won-pegged stablecoins as domestic exchanges seek to integrate digital assets into global payment networks [1][4]. Dunamu, the operator of the Upbit exchange, signed a strategic partnership with Visa on August 27, 2026, to develop stablecoin-based global remittance and payment services [4][6]. This collaboration includes exploring business models for Open USD (OUSD), a dollar-backed stablecoin [5][6].
The Financial Services Commission (FSC) is currently reviewing the legalization of crypto market-making activities following a surge in yen-pegged stablecoin trading on Upbit [1]. The regulator is also considering public oversight for exchanges to address legal gaps left by the Virtual Asset User Protection Act of July 2023 [1].
What to watch
The rollout of Dunamu and Visa’s stablecoin services is scheduled to begin in phases through late 2026, pending regulatory approval [4]. The FSC is expected to publish specific stablecoin licensing rules to clarify the legal status of these assets. A formal license granted to Dunamu would allow the firm to issue or service stablecoins under the new framework.
The launch of the first won-backed stablecoin on a Korean exchange would mark the implementation of the government's 2025 legislative goals [1]. Additionally, the FSC has scheduled the first phase of its securities tokenization infrastructure to begin in February 2027, which will update the Electronic Registration Act to cover money market funds and institutional bonds [2]. A post-launch compliance report from the FSC would confirm the operational status of the stablecoin framework.
Read the full brief · how we got here
How we got here
The South Korean government advanced legislation throughout 2025 to regulate won-pegged stablecoins after the 2023 Virtual Asset User Protection Act failed to address market-making activities [1]. On September 4, 2026, the FSC introduced a formal roadmap for tokenizing securities to integrate blockchain technology into traditional financial products like unlisted stocks and bonds [2].
Dunamu's partnership with Visa follows efforts to build stablecoin and AI-driven payment rails [4][8]. The FSC previously moved to merge various cryptocurrency bills into a unified regulatory structure to streamline stablecoin rules [11][12].
References · 8
- [1]onebullex.com — South Korea FSC Reviews Legalizing Market Making After Upbit Yen ...
- [2]fsc.go.kr — Press Releases - Financial Services Commission
- [4]news.bitcoin.com — Dunamu Partners With Visa to Build Stablecoin, AI Payment Rails
- [5]dailycoin.com — Dunamu and Visa Partner on Stablecoins, AI Payments and Global ...
- [6]cryptotimes.io — Upbit Operator Dunamu and Visa Explore OUSD, Stablecoin Payments & AI
- [8]cryptobriefing.com — Upbit operator Dunamu teams up with Visa on stablecoin and AI payments
- [11]cryptotimes.io — South Korea FSC Moves to Merge Crypto Bills & Set Stablecoin Rules
- [12]coinpedia.org — South Korea FSC Pushes One Bill to Unite Stablecoin Rules
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newest firstWhen we started following: South Korea FSC reviews market-making rules as Dunamu and Visa partner on stablecoin payment infrastructure
South Korea’s Financial Services Commission (FSC) is reviewing the legalization of crypto market making and may introduce public oversight for exchanges following a trading surge in a yen-pegged stablecoin on Upbit [1]. The regulator’s review follows the July 2023 Virtual Asset User Protection Act, which left market-making activities in a legal gray area [1]. The government has also been advancing legislation throughout 2025 to regulate won-pegged stablecoins [1].
Dunamu, the operator of Upbit, signed a strategic partnership with Visa on August 27, 2026, to develop stablecoin payments and global remittance services [4][6]. The collaboration includes exploring business models for Open USD (OUSD), a dollar-backed stablecoin [5][6]. Dunamu CEO Oh Kyung-seok stated that the rollout of these services will be phased in through late 2026, pending regulatory approval [4].
Separately, the FSC introduced a roadmap on September 4, 2026, for the tokenization of securities [2]. The first phase of this infrastructure development is scheduled to begin in February 2027, coinciding with updates to the Electronic Registration Act [2]. This phase will cover privately pooled money market funds, bonds for institutional investors, and unlisted stocks [2].