South Korea proposes cryptocurrency law with bank-style rules for stablecoins
Draft bill outlines comprehensive framework for digital assets, including licensing, issuance and oversight
Apr 8, 2026, 4:28 p.m.
South Korea’s ruling Democratic Party proposed a “Digital Asset Basic Act” Wednesday that would establish a legal framework for digital assets, including issuance, trading, custody and supervision.
“Digital assets are emerging as a core medium connecting the real economy and financial markets,” the proposal states. It defines value-linked digital assets, including those tied to fiat currencies or real-world assets, as a category requiring issuer authorization, refund reserves and redemption obligations.
The new proposal comes amid stalled Digital Asset Basic Act negotiations since early this year when regulators clashed over who should be allowed to issue won-pegged stablecoins. The Bank of Korea insisted banks with 51% ownership should be the only ones authorized to issue stablecoins, while the Financial Services Commission warned this could hinder innovation.
The bill also said it aims to “establish a foundation for Korea to lead the global digital financial order.” Under the proposal, entities seeking to issue such assets must obtain approval and meet requirements including capital thresholds, operational capacity and reserve plans.
The legislation would introduce licensing, registration and reporting requirements for digital asset businesses, including trading, brokerage, custody and advisory services.
It would also establish rules on disclosures, internal controls and market conduct, including prohibitions on unfair trading practices such as market manipulation and use of non-public information.
The proposal calls for the creation of a digital asset committee to review and coordinate policy, as well as national basic and implementation plans for the sector.
It also noted that South Korea’s current system remains focused on investor protection and lacks a comprehensive framework covering issuance, disclosure and market structure.
The proposal follows the announcement of new rules Wednesday by the country’s Financial Services Commission and Financial Supervisory Service ordering all domestic cryptocurrency exchanges to adopt a single, strict system for delaying withdrawals. The aim is to block a surge in voice phishing scams that rely on speed.
More For You
Most crypto privacy models weaken as blockchain data grows. Encryption-based models like Zcash strengthen. CoinDesk Research maps the five privacy approaches and examines the widening gap.
Why it matters:
As blockchain adoption scales, the metadata available to machine learning models scales with it. Obfuscation-based privacy approaches are structurally degrading as a result. This report provides a comprehensive comparison of all five major crypto privacy architectures and a framework for evaluating which models remain durable as AI capabilities improve.
More For You
The Department of the Treasury announced it’s letting crypto firms sign up for timely information-sharing on cybersecurity threats.
What to know:
- U.S. authorities will start sharing timely cybersecurity information with crypto firms that sign up for the same service previously extended only to traditional financial institutions.
- The Treasury Department said the growing importance of the digital assets space warrants its inclusion in these protective measures.
