Won-based stablecoin law to reduce regulatory uncertainty, provide 'rule book'
Marcos Viriato, co-founder and CEO of Parfin, the developer of Rayls / Courtesy of Rayls
Korea is positioning itself ahead of strong regional players in the field of cryptocurrency, like Singapore and Japan, by focusing on a smarter institutional strategy, according to a blockchain expert on Friday.
While Singapore and Japan have been pioneers, Korea is making a clear commitment to proactive regulatory control, said Marcos Viriato, co-founder and CEO of Parfin, the developer of Rayls.
With the Bank of Korea (BOK) signaling its preference for won-based stablecoins to be introduced gradually through regulated banks, it is ensuring that digital currency used for settlement has the same integrity and trust as the Korean won itself, he added.
Rayls combines the compliance with governance regulators’ demands with the scalability and security Web3 requires. It’s a chain being designed for real-world adoption, where central banks, asset managers and fintech companies can safely build and transact at scale.
“Recently, the issue of how the Digital Asset Basic Act and stablecoin policy create the regulatory foundation for institutional-grade digital markets is taking center stage among lawmakers, financial regulators and central bankers,” Viriato said in an interview with The Korea Times.
The recent policy step taken by the ruling Democratic Party of Korea (DPK) and Financial Services Commission (FSC) directly addresses traditional finance’s core fears of regulatory ambiguity and risk, he said.
The Basic Act, in that sense, is an effective tool to implement comprehensive standards for assets, securities and custody. In turn, this will provide the essential legal certainty institutions require.
“The act is the rule book Korea’s financial sector has been waiting for,” Viriato said. “It sets clear standards for asset definitions and conduct for everyone, from banks to virtual asset service providers. This structure eliminates regulatory guesswork. It also creates immediate, high demand for the right technology. When the law mandates high security and clear governance, institutions must turn to advanced solutions providers for compliant infrastructure and native compliance rails.”
Bank of Korea (BOK) headquarters in Seoul / Courtesy of BOK
Complementing this, he said, the BOK policy is the crucial financial piece.
“It favors Korean won-backed stablecoins issued by regulated banks, solving the critical on-chain settlement challenge. Placing issuance with established banks ensures this digital currency has the same regulatory oversight as normal deposits. In short, the act provides the legal structure. The stablecoin policy provides financial integrity. Together, they create a highly trustworthy system ready for trillions of dollars in institutional capital.”
Viriato said that the European Crypto-Assets Regulation (MiCA), as the first comprehensive regulatory blueprint for digital assets, set the global standard for consumer protection, governance and capital requirements for service providers. MiCA was officially adopted in 2023 and fully enforceable as of December 2024.
“It set the precedent for unified legal frameworks across EU member states, covering a range of crypto services and asset types, from stablecoins and utility tokens to crypto asset service providers, such as exchanges and custodians.” he said.
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Multi-party computation (MPC) custody, compliance rails and tokenization platforms will, Viriato added, define which countries lead the next decade of digital finance.
MPC-secured custody is a type of technology offered by numerous digital asset custodians and wallet providers rather than a single physical location. The core principle of MPC is to distribute the components, or shards, of a private key across multiple independent parties and locations, eliminating the possibility of a single point of failure.
“Leading the next phase of digital finance will require trust,” he said.
The countries that adopt trust at scale are the ones that move past the hype. The necessary infrastructure rests on three pillars: security, governance and liquidity.
“First, you have to talk about security. Traditional crypto storage is too risky for major banks. That’s where MPC-secured custody comes in,” Viriato said.
Second, a governance layer is needed.
“While regulations like the (Digital Asset Basic Act) mark a pivotal step in the institutionalization of the country’s digital asset market, it needs the technology to enforce it. That’s why compliance rails are needed.”
Lastly, liquidity is needed to unlock and grow the market.
“Tokenized platforms are the key to doing this, by converting real-world assets, like real estate or private credit funds, into tradable digital tokens. The ability to issue, manage and settle these assets at a scale is what defines a market’s growth potential.”
Rayls is exploring further expansion into the Korean market by partnering with centralized exchanges and traditional finance institutions.
“Having held some events with influential figures and partners in Seoul in 2025 in the run-up to Korea Blockchain Week, Rayls intends to strengthen its retail presence with community meetups in Seoul starting in the first quarter of next year. We will again be meeting old and new partners at Korean Blockchain Week to continue to grow the Rayls Korea ecosystem,” Viriato said.