- South Korea introduced the Digital Asset Basic Act to establish clear regulations for stablecoins and crypto market oversight.
- The law requires companies issuing stablecoins to hold at least 500 million won in equity and gain regulatory approval.
- The government aims to promote stablecoins tied to the Korean won to reduce dependence on foreign digital currencies.
South Korea has accelerated its crypto legislation, aiming to surpass the United States in regulatory clarity and market competitiveness. The newly introduced Digital Asset Basic Act outlines key frameworks for stablecoin issuance and crypto sector oversight. With this, South Korea moves to become a more attractive hub for blockchain development and digital asset innovation.
Stablecoin Framework Anchors South Korea’s Strategy
South Korea’s ruling Democratic Party proposed the Digital Asset Basic Act to regulate domestic stablecoins and enable broader market participation. The bill mandates local companies to maintain a minimum equity capital of 500 million won before issuing stablecoins. In addition, firms must secure approval from the Financial Services Commission and maintain full reserves for redemptions.
The government aims to encourage a stablecoin ecosystem tied to the Korean won to reduce reliance on foreign currencies. The bill intends to strengthen national financial sovereignty by anchoring digital currency growth within domestic regulatory oversight. South Korea’s financial authorities expect the new framework to enhance transactional transparency and economic efficiency.
President Lee Myung pledged support for stablecoin development during his campaign and is rapidly advancing those goals. The law aims to prevent capital outflow while allowing local innovation to flourish in the blockchain sector. With proper reserves and licensing requirements, South Korea seeks to establish a safe and compliant stablecoin environment.
Crypto Investments Expand Under National Strategy
Beyond stablecoins, South Korea is considering new crypto initiatives, including possible national pension fund allocations into Bitcoin. President Lee has directed the country’s financial bodies to evaluate strategic digital asset holdings for long-term economic benefit. South Korea is also studying the feasibility of adding Bitcoin to its national reserves.
These developments reflect a growing national interest in integrating digital assets into mainstream economic planning. The proposed shift signals institutional recognition of crypto’s role in future financial systems. Furthermore, recent trading data shows that Korean markets recorded $42 billion in US dollar stablecoin volume during Q1.
South Korea plans to support foreign participation through revised anti-money laundering laws that simplify access for international digital asset firms. These regulatory updates aim to boost South Korea’s appeal to global platforms while maintaining robust compliance measures. Financial authorities believe clearer laws will attract more licensed entities and capital flows.
U.S. Faces Delays While S. Korea Advances
While South Korea accelerates legislation, U.S. lawmakers continue debating the GENIUS Act aimed at stablecoin regulation. The bill faces procedural hurdles despite Senator Thune’s motion for a final vote. Uncertainty remains as legal experts, including XRP lawyer John Deaton, forecast extended delays.
S. Korea’s proactive model contrasts with the U.S. approach, which still lacks a cohesive legal framework for stablecoins. Although Donald Trump has proposed federal support for crypto, legislative progress in the U.S. remains slow. South Korea’s faster rollout provides a potential competitive advantage in attracting blockchain projects and users.
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Source: https://coincu.com/342470-south-korea-fast-tracks-crypto-laws/