South Korea proposes licensing of stablecoins in new Digital Assets Law

• Mandatory licensing for stablecoin issuers
• Minimum capital of ₩500 million strengthens support and confidence
• Digital Assets Committee oversees crypto market

To proposal presented by Democratic Party MP Min Byeong-deok, establishes the so-called Digital Assets Basic Law, designed to complement the Virtual Assets Investor Protection Law, in force since July 2024. Its objective is to automate clear rules that stimulate innovation, but guarantee security for investors, bringing greater predictability to the national cryptocurrency ecosystem.

The bill provides for a specific licensing regime for stablecoin issuers, with a special focus on tokens pegged to the South Korean won. By requiring formal authorization from the financial regulator, the bill seeks to mitigate liquidity risks and strengthen compliance controls, in line with the guidelines promised by President Lee Jae-myung during the campaign.

🇰🇷 JUST IN: South Korea's ruling party introduces legislation to allow stablecoins.

The proposed Digital Asset Basic Act would enable South Korean companies with over $368K in capital to issue stablecoins. pic.twitter.com/9NqDBgEpKQ

— Cointelegraph (@Cointelegraph) June 10, 2025

One of the key points is the minimum equity capital requirement of 500 million won (about $367.890) for each licensed issuer. The intention is to ensure adequate reserves, enabling redemptions even in adverse scenarios and preventing capital flight to stablecoins backed by foreign currencies.

In addition to stablecoins, the proposal defines in detail what digital assets are, covering everything from issuance and custody to trading on national exchanges. Crypto service providers will now operate under standardized rules, with registration, reporting and periodic supervision processes.

To coordinate public policies, the bill creates the Digital Assets Committee, which will be directly linked to the presidential office. The body will have the mandate to formulate strategic guidelines, while a Digital Assets Industry Association will be tasked with monitoring market practices and evaluating token listings.

The new law also gives the Financial Services Commission expanded investigative powers, including the right to impose administrative or criminal sanctions in cases of manipulation, insider trading or other unfair practices. Penalties range from fines to temporary suspensions of operations, reinforcing the quest for a more honest trading environment.

In parallel, the project cites international experiences, such as the European Union regulation and the debate on stablecoins in the United States and Hong Kong, highlighting the need for global standards that avoid regulatory gaps. With this, Seoul aims to position itself as a reference hub in the digital economy, attracting investments without compromising user protection and financial stability.