South Korea's ruling and opposition parties have reached a consensus on a new digital asset act, pushing for its passage by January after resolving a long-standing dispute over stablecoin issuance. Lawmakers agreed on a bank-led consortium model for issuing won-based stablecoins, where banks must hold a majority stake of over 50%, while allowing technology firms to participate. This structure aims to balance the Bank of Korea's focus on monetary stability with private sector innovation, creating what officials describe as a "Korean-style stablecoin" with clear reserve and issuance safeguards.
The government faces a December 10 deadline to submit its official proposal, according to Democratic Party lawmaker Kang Joon-hyun. If missed, lawmakers plan to advance their own version, with the goal of passing the bill during the National Assembly's extraordinary session in January. This timeline follows internal coordination with the ruling People Power Party and the president's office.
The new act builds on the Digital Asset Basic Act passed earlier in 2025, which established licensing standards, reserve protection rules, and compliance obligations for virtual asset service providers. It seeks to treat digital assets more like traditional financial products, filling regulatory gaps and setting clearer ground rules for U.S.-based stablecoins like USDT and USDC, amid their global dominance. Officials emphasize the urgency due to rising crypto adoption in Korea, particularly among people aged 20 to 50, and concerns that local firms could fall behind regulated markets in the U.S., EU, and Japan.
Additional reforms discussed in closed-door meetings include revisions to the Electronic Financial Transactions Act to strengthen financial security after hacking incidents, with proposals for stricter penalties and post-incident enforcement. Capital market reforms are also underway, focusing on mandatory tender offers and fairer share allocation for everyday investors to enhance transparency.
