South Korea’s Democratic Party Plans Digital Asset Law Before Lunar New Year

The finalized draft sets strict ₩5 billion capital requirements for stablecoin issuers while aiming to position South Korea as a hub for crypto business.

Summary

South Korea’s ruling Democratic Party has finalized the draft of its Digital Asset Basic Act, establishing a ₩5 billion (about $3.8 million) capital requirement for stablecoin issuers and reinforcing oversight through a multi-agency council led by the Financial Services Commission. The measure reflects both tighter regulatory control and an effort to attract digital asset enterprises to South Korea, signaling a dual focus on financial stability and industry growth.

Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a stable value by pegging it to a reserve asset such as a fiat currency.
  • Financial Services Commission (South Korea’s financial regulator): The government agency responsible for overseeing financial institutions and markets in South Korea, including virtual asset regulation.
  • Virtual Asset: A digital representation of value that can be traded or transferred online, including cryptocurrencies and tokens.