South Korea is moving closer to formalizing its approach to stablecoin regulation as lawmakers finalize a new digital asset bill that introduces capital requirements and stronger market oversight. The proposed legislation, known as the Digital Asset Basic Act, is expected to be submitted to the National Assembly ahead of the Lunar New Year and is intended to establish baseline standards across the country’s virtual asset sector. At the center of the proposal is a minimum capital threshold for stablecoin issuers, requiring companies to hold at least 5 billion won before operating in the market. Supporters argue the rule is designed to prevent undercapitalized firms from issuing tokens without sufficient financial backing, reducing risks to users during periods of volatility or market stress. The measure reflects a broader effort by policymakers to balance innovation with safeguards after years of rapid growth in Korea’s crypto economy.
Beyond capital requirements, the draft law also outlines a new framework for government coordination during market disruptions. Lawmakers have agreed to establish an inter ministerial body tentatively referred to as the Virtual Asset Council, which would oversee responses to emergencies such as hacking incidents, system failures, or sudden liquidity shocks. The council would be led by the head of the Financial Services Commission and include senior officials from multiple government agencies, giving regulators a centralized mechanism to manage systemic risks. While the central bank had advocated for unanimous decision making within the council, the task force rejected that approach, citing concerns about delays and the concentration of authority. Instead, lawmakers favored a structure that allows faster intervention while maintaining oversight across different parts of government involved in financial stability and technology policy.
Despite progress on core principles, several contentious issues remain unresolved and are expected to be debated further before the bill is finalized. One major point of disagreement concerns who should be allowed to issue stablecoins, with some policymakers favoring a model dominated by banks and others warning that such restrictions could stifle competition and innovation. Another sensitive area involves proposed ownership limits for major shareholders of crypto exchanges, a measure that industry groups have criticized as potentially harmful to business growth. While there appears to be broad agreement on the intent behind tighter oversight, lawmakers are divided on whether certain rules should take effect immediately or be phased in over time. The outcome of these discussions will shape how restrictive or flexible South Korea’s crypto framework ultimately becomes, and will be closely watched by both domestic firms and international players operating in the region.
