South Korea’s Ministry of Economy and Finance announced plans to advance the Digital Asset Basic Act in the second half of 2026, a sweeping piece of legislation that would bring crypto firmly into the nation’s formal asset management system.
The act covers issuance, trading, custody, and supervision of digital assets.
What’s actually in the bill
The Digital Asset Basic Act was first proposed to the National Assembly by the ruling Democratic Party in June 2025, with further details confirmed by April 2026. The July 14, 2026 announcement from the Ministry of Economy and Finance set a target for passage in the latter half of this year.
The framework categorizes digital assets into two distinct buckets, “general” and “asset-linked” types. Asset-linked tokens, which include stablecoins and other instruments pegged to real-world value, face stricter requirements.
Stablecoin issuers will need to meet licensing standards, maintain adequate reserves, and satisfy redemption obligations, all under the watchful eye of the Financial Services Commission. The minimum capital requirement for certain digital asset issuers is set at KRW 500 million, roughly $360,000.
Spot Bitcoin ETFs and tokenized bonds
South Korea plans to amend its Capital Markets Act to allow spot digital asset ETFs, with Bitcoin products leading the charge.
The government plans to pilot tokenized government bonds in 2027, linking the effort to its broader Central Bank Digital Currency initiatives and exploring blockchain interoperability.
The regulatory package also includes a cross-border stablecoin payment framework.
Why South Korea is moving now
The Digital Asset Basic Act was proposed by the ruling Democratic Party, and previous challenges faced by local authorities over stablecoin management appear to have catalyzed this more comprehensive approach.
What this means for investors
The risk, as always with legislative efforts, is execution. A target of passing the act in the second half of 2026 is ambitious. The KRW 500 million capital requirement could be adjusted upward during legislative negotiations. The 2027 timeline for tokenized government bonds adds another variable that depends on successful CBDC development.