South Korea introduces new law that will oversee the stablecoin market starting this month

South Korea is finalizing the details of the Basic Law on Digital Assets, a regulatory framework that seeks to balance innovation, security and investment in the cryptocurrency and stablecoin sector, consolidating the country as a technological leader in Asia.

The country is preparing a new regulatory framework that promises to redefine how digital assets are managed and monitored, with the aim of strengthening trust in the sector and providing a more stable environment for the growth of technological innovation.

The government recently announced that it has been working on drafting the Basic Law on Digital Assets, an initiative that seeks to establish clear rules for cryptocurrencies and companies operating in this sector. The bill, scheduled to be reviewed before February 17It represents an effort to adapt the country's economic structure to the digital age and ensure that technological adoption advances safely and with institutional support.

If approved, South Korea would take a significant step toward creating a more modern and competitive financial ecosystem, capable of balancing innovation with investor protection. The proposal reflects the country's vision of becoming a regional leader in technology regulation, fostering market confidence and facilitating the development of new opportunities within the crypto sector.

The Basic Law of Digital Assets for a more secure crypto market

The Basic Law on Digital Assets is progressing in South Korea as part of the government's effort to establish clear rules for the use and issuance of stablecoins within the country. The new draft, prepared by the working group on digital assets, proposes that any company interested in issuing this type of currency operate with a minimum capital equivalent to 5.000 billion won, approximately US$3,5 million. This financial threshold stems from existing regulations on electronic financial transactions and aims to ensure that only entities with a solid foundation can participate in this emerging market.

During a press conference, the group's secretary, Ahn Do-geol, explained that the measure aims to strengthen trust and security in services related to the new digital financial ecosystem. This approach aligns with the national objective of combining technological innovation with transparency and institutional accountability, pillars that have guided South Korea's economic development in recent years.

Local media have indicated The project also aims to curb the spread of financially unbacked initiatives that could jeopardize users' money. With this move, the country seeks to consolidate a regulated system in which stablecoins receive treatment similar to that of electronic money, thereby strengthening the sector's legitimacy in the eyes of businesses, investors, and citizens.

On the other hand, it is reported that the working group is continuing its discussion on the role of the Bank of Korea in supervising these assets, as well as the regulations that could apply to the major shareholders of the issuing companies. These issues remain under coordinated analysis, with the intention that regulations evolve in tandem with the country's technological and economic growth.

Connecting traditional finance and digital assets

The bill in question seeks to go beyond establishing market entry regulations. According to available reports, the framework proposes creating a more robust supervisory structure with the establishment of the Virtual Assets Committee, a new high-level body that will operate under the direction of the South Korean Financial Services Commission.

This committee will include key figures from the economic sector, such as the vice governor of the Bank of Korea and the vice minister of Economy and Finance. Its main task will be to act quickly and in a coordinated manner in the face of potential emergencies, such as cyberattacks or technical failures that could jeopardize the stability of the country's digital network.

On the other hand, this initiative coincides with a shift in the government's stance toward businesses. After maintaining a nine-year ban on corporate investment in cryptocurrencies, the new rules will now allow companies to participate in this growing market in a controlled manner. However, the authorities are seeking to maintain a balance: companies will only be able to allocate up to 5% of their share capital to this type of investment, in order to avoid sudden fluctuations or unnecessary financial risks.

With this measure, South Korean regulators are showing their intention to open the door to institutional capital without compromising the stability of the financial system, marking a stage of greater integration between the traditional sector and the crypto world.

South Korea strengthens confidence in crypto

The development of this new legal framework for digital assets aims to position South Korea as a leader in regulatory compliance and investor security. With this initiative, the South Korean government intends to foster a more reliable environment for the growth of the cryptocurrency sector. 

As reported, the new legislation establishes clear guidelines that prioritize market transparency and user protection, while also incorporating security and risk mitigation within the crypto ecosystem. All of this aims to ensure safer operations and reduce the vulnerabilities that have plagued the industry in recent years.

This development reaffirms South Korea's role as one of the countries seeking a structured response to the growing demand for clear rules in the crypto ecosystem. More than a simple reform, the legal framework represents a conscious effort to balance technological innovation with the security that users expect from a maturing market.