In June 2025, Korea took a pivotal step toward institutionalizing its digital asset industry. Representative Min Byung-deok of the Democratic Party submitted the Digital Asset Basic Act to the National Assembly — a comprehensive legislative framework designed to consolidate and regulate various aspects of Korea’s fragmented digital asset ecosystem.
At the heart of the bill lies the legalization of KRW-based stablecoins.
The proposed framework officially recognizes asset-linked digital assets (i.e., stablecoins) and allows licensed domestic corporations with a minimum capital of 5 billion KRW to issue them. Originally, the capital requirement was set at 50 billion KRW, but it was lowered to accommodate fintech startups and smaller institutions.
With this, not only banks but also fintech and electronic finance companies may become stablecoin issuers. The bill mandates strict requirements, such as:
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real-name linked fiat reserves,
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daily and monthly disclosure of issuance, and
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real-time tracking of minting and redemption histories.
The initiative could lay the groundwork for a Korean version of USDC or USDT, bringing legitimacy and utility to KRW-backed digital assets.
The expected outcomes include enhanced trust, use in microtransactions and cross-border payments, and integration with DeFi and e-commerce platforms. As the government also pushes forward with CBDC research and security token frameworks, stablecoins are being positioned as a midpoint between state-backed digital money and private crypto assets.
However, the Bank of Korea raised concerns.
It warned that privately issued KRW-like tokens could undermine the effectiveness of monetary policy and liquidity control. Additional risks include overlap with CBDC objectives, market destabilization through speculative use, and cross-border capital outflows.
The bill is now under review by the National Assembly’s Political Affairs Committee, with a targeted passage later this year.
While many industry players have welcomed the move, they emphasize that specifics around accounting rules, disclosure templates, and reserve standards will determine the law’s actual impact.
As one crypto legal expert put it: “If the regulations are vague or too rigid, it could actually shrink the very market it aims to grow.”
