On June 10, 2025, the ruling Democratic Party introduced the Digital Asset Basic Act. Aimed at enhancing transparency and fostering competition in the cryptocurrency sector, this act enables companies to issue stablecoins provided they have a minimum equity capital of USD 367,876, guaranteeing refunds through reserves.
South Korea’s Perspective on Cryptocurrency
South Korea has long been a center for crypto activity, with more than one-third of its population engaged in digital-asset markets. This act seeks to further support this growth by mandating that asset-linked digital assets, including stablecoins, must be approved by the Financial Services Commission.
Nevertheless, there is opposition from the central bank. The Bank of Korea’s Governor Rhee Chang-yong warned in May 2025 that stablecoins issued by non-bank entities could undermine monetary policy effectiveness. He also suggested that the central bank should oversee the regulation of a won-pegged stablecoin.
Earlier this year, at the beginning of January 2025, South Korea’s Financial Services Commission considered relaxing its restrictions on institutional participation in cryptocurrency trading. This would have allowed institutional investors to open accounts on local crypto exchanges, which were mostly limited to retail traders. The move was consistent with the former President’s campaign pledge to boost the domestic cryptocurrency industry. Additionally, the ruling People Power Party supported initiatives to launch cryptocurrency-related financial products, such as spot exchange-traded funds (ETFs), which remain unavailable in South Korea.
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