South Korea has finalized a draft of its long-awaited Digital Asset Basic Act, a sweeping piece of legislation that strengthens oversight of stablecoins while signaling the country’s intent to attract global crypto businesses rather than push them away.
The bill was finalized by the ruling Democratic Party of Korea and is expected to be submitted to parliament ahead of next month’s legislative calendar.
Stricter rules for stablecoin issuers
At the core of the bill is a new capital requirement for stablecoin issuers. Companies issuing won-pegged or other stablecoins would need at least ₩5 billion ($3.7 million) in paid-in capital, a move aimed at strengthening financial stability and consumer protection.
Lawmakers say the act also clarifies rules around tokenized products, digital asset service providers, and crypto market infrastructure, filling regulatory gaps that have existed for years.
Ending the regulator turf war at least on paper
The legislation is also designed to calm an ongoing power struggle between the Financial Services Commission and the Bank of Korea over who should oversee stablecoins.
While the bill sets clearer boundaries, party officials acknowledged that the underlying dispute hasn’t fully disappeared. Still, they say the framework creates a workable starting point for coordinated supervision.
Task force chair Lee Jeong-mun said the party plans to finalize remaining coordination with government agencies and policy committees in the coming weeks, following months of internal debate.
Part of a broader pro-crypto shift
The Digital Asset Basic Act is just one piece of a wider regulatory pivot in Seoul. Earlier this year, authorities confirmed plans to allow spot crypto ETFs, including Bitcoin ETFs, starting in 2026. The government has also approved rules for tokenized securities and lifted restrictions that previously prevented venture capital firms from investing in crypto companies.
Together, these changes suggest South Korea is positioning itself as a regulated but crypto-friendly hub, balancing tighter rules with clearer pathways for innovation and investment.
