South Korea has introduced the South Korea Digital Asset Basic Act, a legislative proposal aimed at transforming South Korea crypto regulation. Unveiled by lawmaker Min Byeong-deok on June 10, the act promises enhanced oversight of stablecoins, cryptocurrencies, and digital asset services under President Lee Jae-myung’s new administration—setting the tone for South Korea’s emergence as a global digital finance hub.

• A new licensing system for Korean won-backed stablecoins could reshape Asia's digital payment market.
• Two new regulatory bodies will oversee national crypto policy and market operations.
• The bill expands investor protections and introduces clear compliance guidelines for crypto companies.

The South Korea Digital Asset Basic Act is a wide-reaching update to the country’s regulatory stance, building on the Virtual Asset Investor Protection Act that took effect in July 2024. While that law focused primarily on investor safety, the new bill establishes a much broader foundation for South Korea crypto regulation.

One of its most significant elements is the stablecoin licensing regime, which mandates a minimum capital requirement of ₩500 million (approx. $367,890) and prior approval from the Financial Services Commission (FSC). Issuers will also need to maintain reserves and implement bankruptcy protection measures to safeguard user redemption rights—even in the event of financial collapse. As stablecoins continue to rise as a cornerstone of digital finance, South Korea’s proactive licensing regime could serve as a blueprint for balancing innovation with investor protection—setting the stage for a more secure and sovereign stablecoin-driven economy.

Beyond stablecoins, the law outlines criteria for classifying digital assets, introduces trading regulations for tokenized stocks, and sets compliance obligations for crypto businesses operating in South Korea.

The South Korea Digital Asset Basic Act also introduces a new dual-agency oversight structure aimed at strengthening the country’s crypto governance. The first of these, the Digital Asset Committee, will be established under the President’s office and will be responsible for formulating and coordinating national crypto policy. Its creation signifies a top-level commitment to integrating digital assets into South Korea’s broader economic agenda.

Complementing this is the Digital Asset Industry Association, which will focus on operational supervision. This body will be tasked with monitoring market practices, evaluating the eligibility of tokens for exchange listings, and supporting regulatory compliance through specialized subcommittees. These institutions form the backbone of a more structured and accountable digital asset ecosystem.

President Lee Jae-myung, who assumed office on June 4, had campaigned on regulatory clarity and the adoption of digital assets. His broader platform supports spot crypto ETFs, institutional access to crypto, and the use of digital assets by national pension funds—suggesting deep executive alignment with the act’s goals.

Expert Opinions and Quotes

“This is a foundational law that aims to bring full-spectrum transparency and structure to the digital asset market,”
— Min Byeong-deok, Democratic Party lawmaker and digital asset committee leader - Source

FAQs

What is the South Korea Digital Asset Basic Act?
The South Korea Digital Asset Basic Act is a comprehensive legislative proposal to modernize South Korea crypto regulation, including stablecoins, trading platforms, and regulatory infrastructure.

How does South Korea plan to regulate stablecoins?
Issuers of won-backed stablecoins must hold at least ₩500 million in capital and secure FSC approval. This is part of South Korea’s broader effort to reinforce South Korea cryptocurrency laws with robust protections.

Why is the Digital Asset Basic Act important?
It represents a major upgrade in South Korea crypto regulation, promoting investor safety, transparency, and international competitiveness in the digital asset sector.

Who will enforce the new crypto regulations in South Korea?
The Financial Services Commission will lead enforcement, supported by the Digital Asset Committee and the Digital Asset Industry Association under the South Korea Digital Asset Basic Act.

What are the implications for the global crypto market?
The bill could serve as a model for regulatory maturity, setting standards across Asia and influencing global norms in crypto governance and South Korea cryptocurrency laws.