South Korea is moving closer to introducing its first comprehensive cryptocurrency law, as lawmakers prepare to formally submit a long-discussed regulatory bill ahead of the Lunar New Year holiday.
Korean media report that the Democratic Party has finalized the name of the legislation as the Digital Asset Framework Act, signaling that the country is nearing a unified approach to overseeing cryptocurrencies and stablecoins.
Key Takeaways
South Korea plans to submit the Digital Asset Framework Act before the Lunar New Year, bringing crypto and stablecoins under a unified regulatory system.
Stablecoin issuers would face a minimum capital requirement of 5 billion won, similar to existing electronic money rules.
Korea’s move aligns with a global push for clearer crypto regulation, as the U.S. advances its own stablecoin and market-structure laws.
The bill is expected to mark a turning point after years of fragmented discussions and partial rules across different parts of the market.
Digital Asset Framework Act takes shape
The Digital Asset Framework Act is designed to bring the crypto sector into Korea’s formal financial regulatory system. One of the clearest provisions agreed so far is the minimum capital requirement for stablecoin issuers, which would be set at at least 5 billion won.
Lawmakers say this threshold aligns with existing rules for electronic money businesses under the Electronic Financial Transactions Act. The comparison reflects a growing view within the government that stablecoins function more like digital cash or payment instruments than traditional crypto assets.
Stablecoin rules still under coordination
Not all elements of the bill are finalized yet. The scope of authority granted to the Bank of Korea, along with potential limits on ownership stakes held by major shareholders in stablecoin issuers, will be determined later through internal coordination within the Democratic Party’s policy committee.
These remaining decisions are expected to define how tightly stablecoin issuers are supervised and how systemic risks are managed as adoption grows.
Global regulation moves into focus
Korea’s push comes as stablecoin regulation becomes a central topic worldwide. Rapid growth in the use of dollar- and fiat-pegged tokens for payments, trading, and settlements has pushed governments to move beyond temporary guidance toward full legal frameworks.
In the United States, regulators have already taken a major step with the GENIUS Act, which establishes the country’s first federal rules for stablecoins. The law requires full 1:1 reserve backing with high-quality liquid assets, places issuers under federal supervision, and bans the payment of yield on stablecoin balances.
Alongside this, U.S. lawmakers are still debating the CLARITY Act, a broader proposal aimed at defining which regulator oversees different parts of the crypto market. The bill seeks to resolve long-standing jurisdiction disputes and introduces a process for recognizing blockchains as sufficiently decentralized, potentially easing regulatory burdens on mature networks.
Korea closer than ever to nationwide crypto rules
South Korea has debated nationwide crypto regulation for years, often through sector-specific laws or temporary measures. The finalization of the Digital Asset Framework Act’s name and core provisions suggests that this time the process is nearing completion.
With stablecoins playing a growing role in global finance, Korea appears determined to establish clear, enforceable rules and avoid regulatory uncertainty as the market continues to expand.
