Crypto07 April, 20261 min read
South Korea Proposes Digital Asset Law to Regulate Stablecoins and Crypto
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Digital Asset Basic Act would create a framework for issuing, trading, and supervising digital assets. Stablecoins would be governed under bank-style rules, including licensing and oversight.
Comprehensive Framework
South Korea's ruling Democratic Party proposed a Digital Asset Basic Act. The bill would require strict reserve, capital and operational standards for issuers of value-linked digital assets. The proposal seeks to position Korea as a leader in digital finance.
Stablecoin Issuance Debate
The bill comes amid stalled negotiations over who should issue won-pegged stablecoins. The Bank of Korea insisted banks with 51% ownership should be the only ones authorized. The legislation would introduce licensing, registration and reporting requirements for digital asset businesses.
International Collaboration
The Bank of Korea and Banque de France are collaborating on a seminar. Legal challenges have delayed the passage of the Digital Asset Basic Act. South Korean financial institutions are partnering with foreign firms to provide stablecoin payment systems to visitors.
Stablecoin Adoption
Circle CEO Jeremy Allaire plans meetings with major banks and exchanges. Trading in USD Coin continues to soar in South Korea. Kookmin and Circle have completed proof of concept tests using Circle Mint.