Summary
South Korea's Financial Services Commission is preparing a government-backed Digital Asset Basic Act that would consolidate 10 separate cryptocurrency and stablecoin bills into a single regulatory framework, covering exchanges, stablecoin issuance, and investor protection, with most provisions expected to take effect in the second half of 2026.
Key Takeaways
Key Takeaways
- The FSC is consolidating 10 separate crypto and stablecoin bills into one Digital Asset Basic Act, signaling a shift from fragmented debate to unified implementation.
- A proposed rule would require banks to hold at least 51% of any consortium issuing a Korean won-backed stablecoin, a contentious condition that remains unresolved.
- Ownership caps of 15% to 20% in virtual asset exchanges are under consideration, directly implicating major platforms including Dunamu, Bithumb, Coinone, Korbit, and Streami.
- If passed, the Digital Asset Basic Act would become the legislative foundation for South Korea's regulated digital asset market, with most provisions expected to take effect in the second half of 2026.
Government Seeks One Rulebook for Digital Assets
South Korea is moving closer to completing its long-awaited digital asset legislation, with the Financial Services Commission (FSC) preparing a government-backed Digital Asset Basic Act that would consolidate 10 separate cryptocurrency and stablecoin bills into a single regulatory framework.
Announced on July 29 following consultations between the government and the ruling party, the proposal is intended to establish common rules governing digital asset businesses, market operations, stablecoin issuance, and investor protection.
Rather than introducing an entirely new regulatory approach, the legislation seeks to unify competing proposals that have accumulated in the National Assembly over the past year, potentially accelerating the passage of South Korea's second phase of digital asset regulation.
Stablecoins Remain at the Center of the Debate
The proposed legislation would establish legal foundations for digital asset businesses while also creating a regulatory framework for issuing and distributing Korean won-backed stablecoins.
It would introduce rules covering digital asset exchanges, disclosure requirements, business conduct, and investor safeguards, while raising operational and IT resilience standards closer to those applied to traditional financial institutions.
FSC Chairman Lee Won-geon said the government also plans to institutionalize stablecoin issuance while strengthening anti-money laundering controls.
The Biggest Decision Is Still Unresolved
Although lawmakers appear closer to agreeing on a unified stablecoin framework, one of the most contentious issues remains unchanged:
Who should be allowed to issue Korean won stablecoins?
Among the proposals under discussion is a rule requiring banks to own at least 51% of any consortium issuing a won-backed stablecoin.
Another proposal would limit ownership stakes in virtual asset exchanges to between 15% and 20%, potentially affecting platforms including Dunamu, Bithumb, Coinone, Korbit, and Streami.
Those debates have delayed legislation for months.
Earlier proposals also exposed divisions between political parties over reserve requirements, licensing, and issuer eligibility.
A Shift From Debate to Implementation
The consolidation effort suggests South Korea is entering a new stage of its digital asset strategy.
Over the past year, policymakers have focused largely on debating competing stablecoin models and regulatory responsibilities. The latest proposal instead centers on creating a unified legal framework capable of supporting the broader digital asset ecosystem, including exchanges, stablecoin issuers, and investor protections.
If approved, the Digital Asset Basic Act would become the legislative foundation for South Korea's regulated digital asset market, with most provisions expected to take effect during the second half of 2026.