South Korea Finalizes Digital Asset Basic Law for Stablecoins

Key Goals of the Digital Asset Basic Law for Crypto Market Growth

Moving in the advancing world, South Korea’s Democratic Party has finally finalized the Digital Asset Basic Law, a key step to regulate the country’s growing virtual asset market, especially in stablecoins. The bill is planned to submit for review before the Lunar New Year holidays of 2026 which generally falls in February 

Source: Wu Blockchain

Chairman Lee Jeong-moon and Representative Ahn D0-geol of Digital Asset Task Force highlighted the need of such laws for market stability and investor protection under the regulatory guidance without preventing innovation. 

What South Korea’s Digital Asset Basic Law Defines? 

The bill requires all the stablecoin issuers to keep a capital reserve of minimum 5 billion KRW (around $3.5 million) to improve monetary stability and users safety. This approach mirrors the existing electronic currency businesses’ capital rules under Electronic Financial Transactions Act, providing importance to stablecoins as electronic money. 

Following other major targets of the act include:

• Avoidance of virtual coins-related rug pulls, such as Terra/Luna collapse

• Protection to users from the financial failures from issuers side

• Preservation of financial independence for non-USD stablecoins

• Mitigation of unlawful financial risks

• Enabling safe payment integrations, remittances, and tokenized assets. 

What Makes the Law’s Working Efficient and Calculative?

The finalized bill uses a flexible regulatory infrastructure, dividing the virtual coin's market into eight categories. Here high-risk industries will mandate approval from financial authorities, while lower-risk sectors require registrations only. This framework empowers innovation with the maintenance of sufficient oversight in the country. 

Adding on, the Digital-Asset Basic Law introduces a Virtual Asset Committee which will be chaired by the Financial Services Commission (FSC) along with other notable officials such as Deputy Governor of Bank of Korea.  

The committee will assist with rapid responses in cases related to hacks, system failures, and other operational risks, ensuring stronger oversight for the ecosystem. 

Global Stablecoin Regulations in 2026

South Korea’s Digital Asset Basic Law introduction follows the increasing global trends. Some of the major examples that come in 2025 to 2026 includes: 

• European Union: The MiCA framework of the EU requires stablecoins to maintain fully backed reserves, getting license, and redeemable guarantees. The act is live in 27 member countries currently. 

• United States: The country passed its most talked about stablecoin law, the GENIUS Act, in mid-2025. The act mandates 1:1 reserves, federal oversight and regular audits. 

• Hong Kong: Its Stablecoin Ordinance requires full reserves and an HKMA license. The first licenses are expected in early 2026, with high capital requirements leveraging established players.

• Singapore: The MAS framework mandates stablecoins to peg to SGD or G10 currencies, maintain full reserves, and follow prudential standards.

The global economies are now gradually including digital money into mainstream finances as they understand the growing demand and significance of these assets in broader markets. South Korea with its Digital Asset Basic Law, also entered the phase, now its developments are under traders watch until it completely transforms into an act. 

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, always do your own research before investing.