Key Notes
- Min Byeong-deok from the South Korean Democratic Party has unveiled a new bill to establish a further crypto regulatory framework.
- The new bill aligns with the Virtual Asset Investor Protection Act, the existing crypto rule in South Korea.
- Stablecoin traction is growing globally, especially with the push for the GENIUS and STABLE Acts.
South Korea has taken new steps to boost its crypto regulation with a new stablecoin bill. On Tuesday, Min Seok, a lawmaker from the Democratic Party in the region, unveiled the bill, which includes a new licensing regime for stablecoins.
A licensing regime for stablecoin issuers
During a press conference, Seok discussed the Digital Asset Basic Act bill. In his opinion, this bill will be integral in helping South Korea excel in the global digital economy. He ensured that the new stablecoin rule aligned with the existing law in South Korea that oversees cryptocurrencies.
Dubbed the Virtual Asset Investor Protection Act, the existing crypto rule became effective in July 2024. It focuses on protecting investors and their assets, but this new legislation also provides a new, comprehensive, and structured framework for the local digital asset ecosystem.
The new bill includes a key component: the licensing regime for stablecoin issuers. In addition, issuers must attain over 500 million Korean won, equivalent to $367,890, in owners’ capital. Recently elected President Lee Myung promised his supporters that he would boost the Korean cryptocurrency sector in the region.
He intends to approve and promote a Korean won-based stablecoin market to prevent the outflow of domestic capital through stablecoins based on other currencies. As the head of the digital asset committee during President Lee’s election campaign, Byeong-deok’s push for a robust stablecoin regulatory framework hardly comes as a surprise.
South korea intensifies effort on crypto regulation
It is worth noting that South Korea has been putting much effort into its crypto regulation. The Asian nation is fast-tracking its legislation on virtual assets and stablecoins, signaling a significant shift in its financial strategy. At the beginning of 2025, Kim Byoung-hwan, Chairman of the Financial Services Commission (FSC), noted plans to accelerate cryptocurrency institutionalization.
This move demonstrates a stronger commitment to facilitating investor protection while South Korea remains in line with global trends.
“There has been concern about finding a balance between fostering (the virtual asset industry) and protecting investors. Currently, we are a little more interested in protecting investors,” Kim Byoung-hwan’s translated statement reads.
Ultimately, South Korea is focused on achieving a full crypto regulatory framework this year. The main goal of the new framework is to ensure that service providers, crypto users, and the crypto market are catered to.
Stablecoin gains momentum globally
The general stablecoin niche has gained massive traction over the past few months across several jurisdictions, including the United States, South Korea, and even the UAE. In May, the total value of stablecoins reached an All-Time High (ATH) of $250 billion, largely due to the steady rise in attention to the ecosystem since January.
This comes amid the introduction of the GENIUS and STABLE Acts, two comprehensive stablecoin frameworks awaiting passage in the United States.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
