New South Korean Crypto Bill Proposes First Comprehensive Framework for Stablecoins

South Korea is advancing its regulatory approach to digital assets with a newly proposed stablecoin bill, signalling a deeper commitment to shaping a secure and competitive crypto environment.

On Tuesday, Democratic Party lawmaker Min Seok introduced the Digital Asset Basic Act, a comprehensive bill that outlines a formal licensing regime for stablecoin issuers.

Speaking at a press conference, Seok emphasized the bill’s alignment with the existing Virtual Asset Investor Protection Act, which took effect in July 2024 and focuses on safeguarding investors and digital asset holdings.

The proposed legislation goes further by creating a structured framework tailored to the evolving digital asset ecosystem.

A central provision requires stablecoin issuers to hold a minimum of 500 million Korean won (approximately $367,890) in owners’ equity.

This move is seen as a foundational step toward establishing transparency and accountability in the stablecoin sector.

President Lee Myung, who campaigned on strengthening South Korea’s crypto sector, has pledged support for a domestic stablecoin market tied to the Korean won.

The goal is to curb capital flight through foreign-currency stablecoins while fostering homegrown innovation.

Given Min Seok’s role as head of the digital asset committee during Lee’s campaign, his push for this legislation reflects both political continuity and a strategic vision for South Korea’s place in the global digital economy.

South Korea Pushes Forward with Broader Rules for Digital Asset Industry

South Korea is accelerating its efforts to establish a comprehensive regulatory framework for digital assets, marking a pivotal shift in its financial strategy.

The country is moving swiftly to legislate on virtual assets and stablecoins, reflecting a broader commitment to aligning with international regulatory standards.

In early 2025, Kim Byoung-hwan, Chairman of the Financial Services Commission (FSC), announced plans to expedite the institutionalisation of cryptocurrencies.

This initiative underscores South Korea’s intent to enhance investor protection while supporting the responsible growth of the crypto market.

Kim Byoung-hwan’s translated statement reads:

“There has been concern about finding a balance between fostering (the virtual asset industry) and protecting investors. Currently, we are a little more interested in protecting investors.”

The ultimate objective is clear: to implement a full-scale regulatory framework that addresses the needs of service providers, crypto users, and the broader digital asset ecosystem.