South Korea Introduces Groundbreaking Crypto Regulation Framework Backed by President

South Korea has taken a significant step toward crypto regulation with the introduction of the Digital Asset Basic Act, championed by ruling party lawmaker Min Byeong-deok and supported by President Lee Jae-myung. The proposed legislation establishes a licensing system for stablecoin issuers, requiring a minimum capital of 500 million Korean won (approximately $367,890). This move could pave the way for a government-backed stablecoin market, offering a secure and scalable alternative to global stablecoins like USDT and USDC.

The bill goes beyond stablecoins, providing a legal definition for digital assets and creating a Digital Asset Committee overseen by the president. This framework aims to foster innovation while ensuring tighter security for users, potentially attracting developers, DeFi protocols, and exchanges to the Korean market. The regulatory clarity could also mitigate risks associated with unregulated crypto activities.