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News

South Korea Unveils Bold Crypto Law Ahead of New Year

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Key Insights:

  • Stablecoin issuers in South Korea must hold at least 5 billion won in capital reserves.
  • A new Virtual Asset Council will coordinate responses to hacks and system disruptions quickly.
  • The bill moves forward as lawmakers align on oversight structure and regulatory responsibilities.
South Korea Unveils Bold Crypto Law Ahead of New Year
South Korea Unveils Bold Crypto Law Ahead of New Year

South Korea’s Democratic Party has completed a draft law to regulate digital assets. Named the Digital Asset Basic Act, the proposal will be submitted for review before the upcoming Lunar New Year. It sets rules for stablecoin issuers and outlines a new body to oversee market risks.

Capital Requirement for Stablecoins Set at 5 Billion KRW

The bill would require stablecoin issuers to hold a minimum capital of 5 billion Korean won, which is around $3.5 million. This matches the standard for electronic money firms under current financial law.

Ahn Do-geol, secretary of the party’s digital asset task force, said during a press briefing, 

“We agreed to set the legal capital requirement for stablecoin issuers at least 5 billion won.”

 The rule is based on the view that stablecoins function similarly to electronic currency and should follow similar safeguards.

New Oversight Group to Handle Market Incidents

The draft law also includes plans for a new Virtual Asset Council. The group will coordinate responses to risks in the crypto market. It will be led by the Financial Services Commission chair, with members including the Bank of Korea deputy governor and the Vice Minister of Economy and Finance.

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The council will be responsible for responding quickly to major incidents. This includes technical failures, hacks, and other disruptions linked to virtual asset systems.

Ongoing Coordination Before Submission

The Digital Asset Task Force, chaired by Lee Jeong-moon, met at the National Assembly on January 28. The group reviewed core parts of the bill, including rules on stablecoins and how supervision should work.

Final adjustments are being handled in partnership with the party’s Policy Committee and related government offices. Some areas, like the scope of the Bank of Korea’s role and rules on major shareholders, are still under review and will be settled before the bill is formally introduced.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Olivia Stephanie

28 January 2026, 15:19:03 GMT +0000

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