South Korea Advances Crypto Regulation with Focus on Stablecoin Oversight

South Korean lawmaker Min Byeong-deok has proposed the Digital Asset Basic Act, a comprehensive bill aimed at structuring the country''s crypto asset environment. The legislation builds on the VIRTUAL Asset Investor Protection Act enacted in July 2024, expanding beyond investor safeguards to establish a legal framework for digital assets.

The bill introduces a licensing regime for stablecoin issuers, requiring a minimum capital of 500 million Korean won ($367,890) to ensure financial accountability. This MOVE aligns with President Lee Jae-myung''s policy agenda to foster a domestic stablecoin market, particularly favoring Korean won-denominated offerings.

Min, who chaired the digital asset committee during Lee''s campaign, positioned the bill as a strategic step for South Korea''s leadership in the digital economy. The proposal reflects global trends toward stablecoin regulation while promoting local currency integration in crypto markets.