Share this article
South Korea proposes cryptocurrency law with bank-style rules for stablecoins
Draft bill outlines comprehensive framework for digital assets, including licensing, issuance and oversight
Apr 8, 2026, 4:28 p.m.
What to know:
- South Korea’s ruling Democratic Party has proposed a Digital Asset Basic Act that would create a comprehensive legal framework for issuing, trading, holding and supervising digital assets.
- The bill would require authorization and strict reserve, capital and operational standards for issuers of value-linked digital assets, including stablecoins tied to fiat currencies or real-world assets.
- The proposal, which seeks to position Korea as a leader in digital finance, comes as regulators tighten crypto rules, including new mandatory withdrawal delays on domestic exchanges to combat fraud.
The new proposal comes amid stalled Digital Asset Basic Act negotiations since early this year when regulators clashed over who should be allowed to issue won-pegged stablecoins. The Bank of Korea insisted banks with 51% ownership should be the only ones authorized to issue stablecoins, while the Financial Services Commission warned this could hinder innovation.
The bill also said it aims to “establish a foundation for Korea to lead the global digital financial order.” Under the proposal, entities seeking to issue such assets must obtain approval and meet requirements including capital thresholds, operational capacity and reserve plans.
