South Korea’s Crypto Leap: President Greenlights Stablecoin Legalization in Landmark Bill

Seoul shakes up the financial playground—legacy banks, meet your new blockchain rivals.

The bill slashes red tape, giving regulated stablecoins a VIP pass into Korea''s economy. No more regulatory limbo for pegged assets.

Watch traditional finance squirm as KRW-backed tokens bypass SWIFT delays. (Cue the ''decentralization disrupts'' think pieces.)

One cynical footnote: Wall Street''s probably drafting their ''stablecoins are dangerous'' op-eds between martini lunches.

South Korea''s National Assembly has introduced the country’s first Basic Act on Digital Assets which includes provisions on stablecoin issuance.

This is a significant milestone as it marks the first comprehensive… pic.twitter.com/WVXc7els6z

— 100y.eth (@100y_eth) June 10, 2025

Criteria Stablecoin Issuers Need To Meet

According to the new bill, stablecoin issuers must obtain approval from the Financial Services Commission (FSC) and meet a few more eligibility criteria. The issuer must be a corporation established in South Korea and must have a minimum capital of at least KRW 500 million ($350k) with the specific amount to be defined by Presidential Decree.

Furthermore, the issuer must have a sound and viable business plan and must have the necessary physical infrastructure such as IT systems and qualified personnel as prescribed by Presidential Decree to protect users and perform its intended functions.

Stablecoins are now a top 20 holder of US treasuries

Bigger than Saudi Arabia, South Korea, UAE, Germany pic.twitter.com/ZhULykNZoV

— Sar Haribhakti (@sarthakgh) June 7, 2025

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South Korea’s Increased Retail Crypto Participation 

South Korea’s increased retail crypto participation, along with its experience in the past with crypto frauds, hastened new regulations through which the country intends to ensure greater transparency, security, and trust in the cryptocurrency ecosystem.

Strict regulations (Virtual Asset User Protection Act) were brought into focus in July 2024. They imposed strict requirements on crypto exchanges that included potential life sentences for criminal violations.

South Korea’s Financial Services Commission, on 20 May 2025, established new regulations for non-profit crypto transactions and tightened listing criteria for exchanges.

Furthermore, the South Korean Democratic Party kick-started a Digital Asset Committee to develop crypto policies and promote industry growth.

: The 12+ Hottest Crypto Presales to Buy Right Now

Key Takeaways

• South Korea’s Digital Asset Basic Act will allow local companies to issue stablecoins.

• According to the new bill, stablecoin issuers must obtain approval from the Financial Services Commission (FSC) and meet a few more eligibility criteria.