South Korea Moves to Legalize Stablecoin Issuance Under Sweeping Digital Asset Bill

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South Korea is moving toward legalizing local stablecoin issuance following the introduction of the extensive Digital Asset Basic Act on June 10, 2025. The Democratic Party, under recently elected President Lee Jae‑myung, submitted the legislation to establish a streamlined digital asset framework. Among its most notable suggested changes is allowing domestic companies to issue stablecoins.

Under the proposed rules, stablecoin issuers would need to maintain a minimum of 500 million won (~US $366,000) in equity and hold sufficient reserves to guarantee redemptions for holders. Issuers will require approval from the Financial Services Commission and must comply with registration and reporting obligations. The bill also suggests the creation of a new Digital Asset Committee to coordinate industry policy.

Lee Jae-myung was elected on June 3, 2025, following a snap election. Known for his pro-crypto stance, this development aligns with President Lee’s campaign pledges to foster a modern regulatory framework for digital assets, including the legalization of crypto ETFs and pension fund investments in digital asset markets. 

The new bill is anticipated to support the growth of South Korea’s already active crypto market, which involves around 18 million citizens. This is more than a third of the country’s population.

The initiative, however, faces resistance from the Bank of Korea, with Governor Rhee Chang‑yong warning that non-bank-issued stablecoins could undermine monetary policy.