South Korea Finalizes its Digital Asset Bill Draft Amid Crypto Push

South Korea could be set to finally implement its digital asset bill into law amid new progress of the legislation. The ruling party in the country shared that they have completed the details of the new Act.

Democratic Party of South Korea Wraps Up Digital Asset Bill Draft

According to ChosunBiz, the Democratic Party of Korea has finalized the details of the new bill. The legislators confirmed the name of the bill will be the “Digital Asset Basic Act.” This legislation covers the stablecoin framework that would be implemented in the country.

The digital asset task force (TF) held its second plenary session earlier today to deliberate on the path to progress the Act. In the meeting, they agreed to set the legal capital requirement for stablecoin firms to 5 billion won, which is about $3.5 million.

It was reported that the task force plans to meet with government authorities and the party policy committee soon. This is in a bid to propose the digital asset bill in South Korea before next month.

This progression comes just after last month’s South Korean regulators clashed on how stablecoins should be regulated. This led to strong debates between the Financial Services Commission (FSC) and the Bank of Korea.

Meanwhile, it was reported that this pending issue still remains. Concerns about the restriction parameters on the shareholding of major shareholders also lingers. Chairperson of the task force, Lee Jeong-mun, shared with reporters on the progress of the proceedings.

“Soon, at the TF level, we will coordinate what has been sorted out regarding the issues with the party’s policy committee and discuss it with the government,” he said.

The secretary of the task force also shared that the outstanding concerns on South Korea’s Digital Asset Bill have been sorted out before the Lunar New Year Holiday.

Korea Builds Momentum in Crypto Adoption

The new update on the crypto regulation law builds on the momentum growing in the country. For instance, earlier this month, Korea confirmed it would allow the launch of crypto ETFs, including a Bitcoin ETF, in 2026. They encouraged institutions to propose a license to apply for the issuance of the exchange-traded funds.

Adding to the Digital asset bill, South Korea lawmakers recently approved legislation that formally allows the use of tokenized securities in its financial ecosystem. They made an amendment to the Capital Markets Act to allow the trading of such assets using brokerages and other intermediaries.

Moreover, they ended a ban that stopped venture capital investments in crypto firms seeking funding. This shows a growing pro-crypto regulatory environment.