President Lee Jae-myung’s Vision
President Lee Jae-myung aims to further develop this area under his leadership. On June 10, 2025, the ruling party proposed the Digital Asset Basic Act, which focuses on enhancing transparency and promoting competition within the crypto sector.
Companies in South Korea can now issue stablecoins if they have at least $367,876 in equity capital. This move guarantees refunds through reserves, ensuring a safeguard mechanism for investors.
Supportive Measures from the Legislation
According to the act, asset-linked digital assets, including stablecoins, must obtain approval from the Financial Services Commission. This legislative push reflects the government’s commitment to fostering growth in the sector.
Central Bank’s Concerns
However, the central bank under Governor Rhee Chang-yong opposes this initiative. In May 2025, he warned that stablecoins issued by non-bank entities could undermine monetary policy effectiveness. He also highlighted the need for the central bank to oversee any won-pegged stablecoin.
Previous Steps Towards Crypto Growth
Before these new developments, South Korea had been a significant player in crypto activities, with more than one-third of its population involved in digital asset markets. In January 2025, the Financial Services Commission considered easing restrictions on institutional cryptocurrency trading, aiming to allow institutional investors to access local crypto exchanges previously limited to retail traders.
These changes aligned with the former president’s campaign pledge to support domestic crypto industry growth. The ruling People Power Party also supported initiatives like spot exchange-traded funds (ETFs), which were not available in South Korea at the time.