South Korea proposes new law to regulate Stablecoins and strengthen the crypto sector

The new bill seeks to strengthen current legislation since 2024, and plays special emphasis on the issuance and circulation of Stablecoins, in the light of the growing interest in this type of cryptoactive.

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• The bill seeks to establish a licensing regime for stablecoins issuing.
  
• It reflects the promise of President Lee Jae-Myung to develop a Stablecoins market anchored to the South Korean Won.
  
• It also proposes a legal definition of digital assets and penalties for unfair practices.

Within the framework of regularizing the situation for cryptocurrencies in South Korea, a legislator presented a new regulatory proposal that points to the Stablecoin, with which it seeks to establish frameworks for these assets due to the growing interest between people and institutions.

Proposal to regulate cryptocurrencies, especially Stablecoins

The person responsible for this new initiative, known as the “Basic law of digital assets”, It is the South Korean legislator Min Byeong-Odok. During a conference presented in Seoul, he stressed that this initiative will serve as a cornerstone for the structured development of the crypto ecosystem in South Korea.

This new project expands the principles established in the Investor Protection Law in Virtual Assetsin force since July 2024. While that initial law focused on protecting users of the crypto market, The new proposal aims to build a regulated and predictable environment for institutional participants and infrastructure developers.

One of the key pillars of the legislation is The implementation of a licensing regime for Stablecoins issuers. According to the proposed text, the issuers must have a capital of their own greater than KRW ₩ 500,000,000, equivalent to approximately USD $ 367,890.

Min explained that this measure seeks to strengthen public confidence and avoid financial risks derived from irresponsible emissions or poorly backed up. It is also sought to prevent the escape of national capital towards Stablecoins foreign.

The proposal is aligned with the promise of the newly elected president, Lee Jae-Myung, who during his electoral campaign promoted the development of a Stablcoins market called in Won Surcoreano. Its objective is to ensure that the digital assets used in South Korea do not depend on foreign currencies, such as the US dollar.

Min was head of the Digital Assets Committee during Lee’s campaign, and pointed out that this legislation responds directly to the need for a monetary policy adapted to the digital age. The initiative also contemplates the creation of a Digital Assets Committee that would be under direct supervision of the president.

This committee would have Authority to define technical standards, issue regulatory guidelines and coordinate with other State agencies the development of financial innovation policies.

Global regulations as a reference

During the presentation, Min also referred to existing regulatory frameworks in the United States, the European Union and Japan. He stressed that these jurisdictions already contemplate broad norms that regulate not only the issuance, but also the circulation and trade of digital assets.

In that sense, the Basic Digital Assets Law Korean seeks to incorporate similar elements, adapted to the particularities of the local market. The intention is to avoid legal gaps and harmonize South Korean regulation with international standards that allow interoperability and cross -border cooperation.

The closest example cited was that of Hong Kong, where legislation that requires mandatory licenses for Stablecoins issuing, in a model similar to that now proposed in South Korea was recently approved.

Legal definition and fighting bad practices

Another essential component of the new law is to establish a legal definition of what constitutes a “Digital active” within the South Korean legal system. This definition would serve as a basis for regulating service providers, such as exchanges, custodians and emitters.

In addition, the proposal includes provisions to sanction unfair practices in the cryptoactive market, such as price manipulation, the use of privileged information and the lack of transparency in operations.

Min assured that These measures are necessary to guarantee market integrity and offer a legal framework that protects both consumers and legitimate operators.

With this initiative, South Korea is positioned at the forefront of financial regulation in Asia, betting on a hybrid model that combines technological innovation with institutional protection. Although it must still be debated and approved by the National Assembly, the Basic Law of Digital Assets Mark a turning point in the country’s digital strategy.

The Government of Lee Jae-Myung continues to consolidate a pro-written agenda that contrasts with the most cautious position of neighboring countries, betting on legal clarity will be an engine to attract investment and talent to the national technological sector.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.

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