South Korea's Democratic Party Introduces Digital Assets Bill with 3.5 Million USD Stablecoin Capital Floor

DeFi_Dad_Jokes · 2026-02-16T14:09:15+00:00

South Korea's ruling Democratic Party of Korea is introducing the "Basic Law on Digital Assets" to regulate the virtual asset sector, including a 5 billion won capital requirement for stablecoin issuers, while pending negotiations address central bank authority and shareholder stakes.

DeFi_Dad_Jokes

2026-02-16 14:09:15

Abstract generation in progress

According to South Korean media, the ruling Democratic Party of Korea has finalized its comprehensive regulatory framework for the virtual asset sector through what’s being called the “Basic Law on Digital Assets.” The party plans to introduce this legislation before the year-end recess, marking a significant step toward establishing clear guidelines for cryptocurrency operations.

Stablecoin Capital Requirements: Converting Regulatory Benchmarks

A key provision of the proposed legislation establishes minimum financial safeguards for stablecoin issuers. The ruling party agreed to set the minimum legal capital requirement at 5 billion won, which translates to approximately 3.5 million USD in international terms. This billion won to usd conversion reflects South Korea’s effort to align domestic regulations with global cryptocurrency standards while accounting for local market conditions.

Regulatory Framework: Pending Coordination Points

While the party has solidified core aspects of the bill, several significant components remain under negotiation. The scope of the central bank’s regulatory authority and restrictions on major shareholder ownership stakes are expected to be finalized following additional discussions with relevant policy committees. These outstanding matters represent typical coordination points in digital asset regulation, as authorities seek to balance innovation with consumer protection and financial stability.

The legislative progress demonstrates South Korea’s commitment to establishing a structured environment for digital asset trading and stablecoin operations, setting clearer expectations for market participants.

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