South Korea Pushes to Finalize Digital Assets Law by January
In a significant development, South Korea is moving forward with finalizing a new digital assets law by January, following an agreement between ruling and opposition lawmakers on a stablecoin framework that had stalled negotiations for months. This breakthrough is expected to provide clarity and stability to the country’s digital asset market.
According to recent reports, lawmakers have agreed on a bank-led consortium model for issuing KRW stablecoins, which is intended to balance the Bank of Korea’s focus on currency stability with the need for innovation in the private sector. This model allows banks to hold a majority stake while permitting technology companies to participate, providing a foundation for a “Korean-style stablecoin” with robust safeguards around reserves and issuance.
Key Provisions and Deadlines
The agreement marks a significant step forward in the development of South Korea’s digital asset regulatory framework. Lawmakers have set a December 10 deadline for the government to submit the proposal, with the aim of passing the bill during the extraordinary session of the National Assembly in January. The new law builds on the Digital Asset Basic Act passed earlier this year, which established licensing standards for issuers, reserve protection rules, and compliance obligations for virtual asset service providers.
The new legislation seeks to treat digital assets more like traditional financial products, closing the last major gaps in the regulatory framework. It also sets clearer ground rules for US-based stablecoins, such as USDT and USDC, which dominate the market. Officials emphasize the importance of timely progress, given the growing adoption of cryptocurrencies in Korea, particularly among people aged 20 to 50.
Broader Reforms Targeting Financial Security and Market Transparency
Separate bills on financial security and market transparency were also considered at the meeting. In response to several hacker attacks on major financial companies, lawmakers are planning to revise the law on electronic finance, including tougher penalties and post-incident enforcement. The government is also working with opposition parties on capital market reforms, such as requiring mandatory takeover bids in certain corporate situations and updating share allocation rules to provide fairer access for everyday investors.
These developments underscore South Korea’s commitment to creating a robust and transparent digital asset market, aligned with international standards. As the country moves forward with its regulatory framework, it is likely to have significant implications for the global digital asset landscape. For more information, visit https://crypto.news/south-korea-lawmakers-january-digital-asset-act-2025/.
