[Report] The Necessity of KRW Stablecoins and Proposal for a Legislative Framework

The Necessity of KRW Stablecoins and Proposal for a Legislative Framework

In this report, Four Pillars and Hashed Open Research analyze global stablecoin growth and dollar dominance in digital markets. The report explores KRW stablecoin implementation to preserve monetary sovereignty and proposes regulatory frameworks to strengthen Korea's digital economy position.

Apr 1, 2025

*This report is co-authored by Hashed Open Research, Four Pillars and Hyobong Kim from Bae, Kim & Lee LLC.

Stablecoins have expanded well beyond blockchain markets, exceeding $200 billion in issuance across 100+ million wallets in 2024. Notably, Tether ranks 19th in U.S. Treasury holdings and is projected to surpass South Korea's holdings by 2025.

The growing influence of stablecoins and rising USD stablecoin volumes on Korean exchanges pose significant challenges for regulation and monetary sovereignty. As the dollar maintains dominance, KRW usage in the digital economy will diminish if stablecoins further integrate with the real economy.

This report, co-authored by Hashed Open Research, Four Pillars, and Hyobong Kim, provides comprehensive analysis from global trends to practical domestic legislative approaches.

With the U.S., EU, Singapore, and Hong Kong already establishing regulatory frameworks, Korea must urgently secure regulatory initiative and preserve KRW usability. We hope this report initiates meaningful discussions on domestic stablecoin regulation and KRW stablecoin implementation.

Table of Contents

Stablecoin: Future of Money (Yongbum Kim, Hashed Open Research)
Growing Stablecoin Market: Challenges And Opportunities For Korea (@pillarbear_, @FourPillarsKR / @FourPillarsFP)
Proposal For Domestic Stablecoin Legislation (Hyobong Kim, Bae, Kim & Lee LLC)

The author of this report may have personal holdings or financial interests in assets or tokens discussed herein. However, the author affirms that no transactions have conducted using material non-public information obtained in the course of research or drafting. This report is intended solely for general information purposes and does not constitute legal, business, investment, or tax advice. It should not be used as a basis for making any investment decisions or as guidance for accounting, legal, or tax matters. Any references to specific assets or securities are made for informational purposes only and should not be construed as an offer, solicitation, or recommendation to invest. The opinions expressed herein are those of the author and may not reflect the views of any affiliated institutions, organizations, or individuals. The opinions and analyses expressed herein are subject to change without prior notice. In addition, beyond the individual disclosures included in each report, Four Pillars, may hold existing or prospective investments in some of the assets or protocols discussed herein. Furthermore, FP Validated, a division of Four Pillars, may already be operating as a node in certain networks or protocols discussed herein or may do so in the future. Please see below links in the footer for FP Validated's participating network disclosures and for broader disclosure details.

The Necessity of KRW Stablecoins and Proposal for a Legislative Framework

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