South Korea’s Digital Asset Bill Requires $3.5M Capital for Stablecoin Issuers

Highlights:

• South Korea’s Democratic Party drafts Digital Asset Basic Act to regulate cryptocurrency.
• Bill sets a stablecoin framework and new rules for companies operating in the market.
• Task force requires stablecoin firms to hold legal capital of $3.5 million.

South Korea is moving closer to enacting its long-discussed digital asset legislation. The Democratic Party of Korea has completed the draft of the “Digital Asset Basic Act,” a law designed to regulate the country’s growing cryptocurrency sector. The bill includes a framework for stablecoins and sets new requirements for firms operating in the market.

Stablecoin Companies Face Capital Requirements

The digital asset task force recently held its second plenary session to finalize details. During the meeting, members agreed that stablecoin companies must hold legal capital of 5 billion won, equal to about $3.5 million. This financial threshold is intended to strengthen oversight and ensure stability in the sector.

Chairperson of the task force, Lee Jeong-mun, explained the next steps in the process. “Soon, at the TF level, we will coordinate what has been sorted out regarding the issues with the party’s policy committee and discuss it with the government,” he said. The secretary of the task force added that unresolved matters had been addressed before the Lunar New Year holiday.

According to Daily Economic News, South Korea's Democratic Party has finalized the virtual asset market bill as the "Digital Asset Basic Law," planning to submit it for deliberation before the Lunar New Year holiday. Stablecoin issuers must have minimum statutory capital of at…

— Wu Blockchain (@WuBlockchain) January 28, 2026

The legislation comes as regulators remain divided on how to handle stablecoins. Last month, disagreements between the Financial Services Commission and the Bank of Korea highlighted the difficulty of reaching a consensus. Concerns also continue over limits on shareholding by major investors in crypto exchanges, an issue that still draws attention.

New Committee Proposed for Market Protection

The bill goes beyond just setting capital rules and introduces a new system to protect the market. It calls for a Virtual Asset Committee, led by the Financial Services Commission chair, with the Bank of Korea’s deputy governor and a vice minister from the Ministry of Economy and Finance also on board.

The committee will handle emergencies like hacks, technical failures, or sudden market shocks quickly and efficiently. Before submitting the bill, the task force will finalize discussions with the party’s policy committee and other government departments. Lawmakers aim to send it forward before the Lunar New Year holiday on February 17, 2026.

South Korea Eases Rules as Digital Assets Gain Wider Support

Even though ownership limits may seem strict, South Korea is gradually opening up to digital assets. Earlier this month, officials confirmed that spot crypto exchange-traded funds, including a Bitcoin ETF, will be allowed from 2026. They also invited institutions to apply for licenses to issue these funds.

South Korea said in its 2026 Economic Growth Strategy that it plans to allow spot digital asset ETFs, including spot Bitcoin ETFs, this year, while the Financial Services Commission (FSC) accelerates phase-two digital asset legislation. The government cited active spot Bitcoin…

— Wu Blockchain (@WuBlockchain) January 9, 2026

Alongside the digital asset bill, lawmakers approved legislation allowing tokenized securities in the financial system. They amended the Capital Markets Act to let brokerages and intermediaries trade these assets. The government also lifted a ban that had blocked venture capital from investing in crypto firms. This reflects a clear shift toward a more pro-crypto regulatory environment.