South Korea is preparing to finalize a major shift in its digital asset policy as part of a broader economic strategy that places stablecoins and institutional crypto adoption at the center of future financial infrastructure. Under a government roadmap tied to its 2026 economic growth agenda, authorities plan to complete comprehensive stablecoin legislation within the first quarter of the year while also paving the way for spot crypto exchange traded funds. The move reflects a departure from earlier risk focused regulation toward a framework that supports structured adoption and industry development. Stablecoins are set to be treated as regulated financial instruments, with clear issuance standards and consumer protections. At the same time, the government signaled that digital assets will play a growing role in both private markets and public finance, positioning blockchain based money as part of the country’s long term economic modernization strategy.
The stablecoin framework will be overseen by the Financial Services Commission, which is tasked with completing the second phase of the country’s digital asset legislation. Issuers will be required to obtain authorization, meet capital thresholds, and maintain reserve assets equal to the full value of tokens in circulation, alongside guaranteeing redemption rights for users. These measures are designed to restore confidence after the collapse of the Terra ecosystem in 2022 and to prevent similar failures. The rules will also extend to cross border stablecoin transactions, signaling intent to support regulated international payments and settlement use cases. In parallel, authorities confirmed plans to allow spot crypto ETFs for the first time, opening a direct channel for institutional investors to access digital assets within domestic capital markets. The change aligns South Korea with other major financial centers that have already approved similar products.
Beyond market regulation, the government outlined plans to integrate blockchain technology directly into public sector finance. By 2030, officials aim for roughly one quarter of national treasury disbursements to be executed using deposit tokens, a form of digital currency linked to regulated financial institutions. A pilot program is scheduled to begin in the first half of 2026, initially targeting subsidies related to electric vehicle charging infrastructure. The goal is to improve transparency, enable real time tracking of funds, and reduce fraud and administrative overhead. Successful implementation could lead to broader use across public payments and welfare programs, supported by planned legal amendments involving the Bank of Korea and national treasury laws. Taken together, the measures represent one of the most comprehensive national strategies to date for embedding stablecoins and digital assets into both financial markets and government operations.
