South Korea Advances Digital Asset Bill Toward Formal Submission

South Korea’s digital asset bill is advancing towards formal proposal, with lawmakers completing key parts of the bill. The ruling party confirmed the details of the Act, marking a major milestone towards developing clear guidelines on crypto activities in the country.

According to the lawmakers, the title of the Act will be the Digital Asset Basic Act. The Act provides a regulatory framework for the operation of stablecoins. It provides the operating conditions for operators who wish to issue or manage the digital asset, as stated in the digital asset bill.

The digital asset task force conducted its second plenary session earlier today. The members agreed to establish a capital requirement of 5 billion won, or $3.5 million, for the operators of stablecoins. This is one of the key pillars of the digital asset bill.

Regulatory Disputes Slow the Digital Asset Bill

The task force will hold meetings with the government ministries and the party policy committee. This is to submit the digital asset bill before the next month. According to the officials, the process will depend on the meetings.

There was a period of disagreement between the Financial Services Commission (FSC) and the Bank of Korea on the regulations surrounding the operation of stablecoins. This slowed the development of the digital asset bill.

Also Read: Stablecoins Remain Controversial While South Korea Weighs Virtual Asset Rules

Other issues still pending include those regarding the shareholding limits of major investors. According to Lee Jeong-mun, the chair of the task force, they will work on resolving these issues through further consultation. Lee also noted that it is essential to align on these issues before completing the digital asset bill.

Government Moves Forward With New Crypto Rules

The task force secretary noted that they had already addressed most of the pending issues before the Lunar New Year holiday. This announcement suggests a growing consensus. At the same time, it also serves as a guide for lawmakers on how to make final adjustments to the digital asset bill.

The South Korean government continues to enhance its digital asset regulations. The government announced earlier this month that it will allow crypto ETFs, including a Bitcoin ETF, in 2026. Institutions may now work on filing license applications for future crypto ETFs.

The lawmakers also approved amendments to the Capital Markets Act. The changes allow for the regulated trading of tokenized securities. The changes are also in line with the government’s digital finance reforms, particularly those regarding the digital asset bill.

The government also lifted restrictions on the amount of venture capital investments allowed in crypto companies. The move allows more funding options for startups in the crypto space. All of these developments show a more favorable environment, particularly with the digital asset bill.

Also Read: Stablecoin Adoption Could Drain $500 Billion in Bank Deposits by 2028