South Korea’s Newly-Elected President Takes Steps to Legalize Stablecoins via Cryptocurrency Legislation

South Korea’s freshly elected leader, Lee Jae-myung, has introduced the Digital Asset Basic Act. This cryptocurrency legislation permits domestic firms to issue stablecoins.

Lee – recognized as a progressive figure who triumphed over a conservative rival – is swiftly acting to fulfill commitments made during his electoral campaign. Lee has also championed the legalization of spot crypto asset exchange-traded funds (ETFs). It is noteworthy that in regard to digital currency, both candidates, the liberal Lee and the conservative Kim Moon-soo, adopted fully pro-crypto stances in their electoral strategies.

“Today, I want to underscore a critical inflection point for the future of digital finance in the Republic of Korea and to advocate for the foundational law concerning digital assets,” expressed lawmaker Min Byeong-deok while unveiling the bill during a press conference on June 10, 2025.

“Digital assets have transcended experimental status,” he asserted. “Blockchain and artificial intelligence technology now serve as crucial links connecting the global capital crypto market with the established real economy infrastructure.”

Can stablecoins be issued in Korea now? ELI5 on the new bill

South Korea’s National Assembly has put forth the first Basic Act on Digital Assets, which encompasses provisions for the issuance of stablecoins.

This represents a momentous achievement as it signifies the initial comprehensive… pic.twitter.com/WVXc7els6z

— 100y.eth (@100y_eth) June 10, 2025

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Requirements for Stablecoin Issuers

As elaborated in the recent legislation, stablecoin issuers must gain approval from the Financial Services Commission (FSC) and comply with additional eligibility criteria. The issuer has to be a corporation founded in South Korea and should possess a minimum capital of at least KRW 500 million ($350k), with the specific amount to be established by Presidential Decree.

Moreover, the issuer needs a robust and feasible business strategy along with the requisite physical infrastructure such as IT systems and competent personnel as stipulated by Presidential Decree to safeguard users and execute its intended functions.

Stablecoins have now become a top 20 holder of US treasuries

Bigger than Saudi Arabia, South Korea, UAE, Germany pic.twitter.com/ZhULykNZoV

— Sar Haribhakti (@sarthakgh) June 7, 2025

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Rising Retail Crypto Participation in South Korea

The surge in retail participation in cryptocurrencies in South Korea, combined with its past experiences with crypto asset frauds, has expedited the introduction of new regulations aimed at ensuring enhanced transparency, security, and trustworthiness within the crypto asset framework.

Rigorous regulations (Virtual Asset User Protection Act) were highlighted in July 2024, imposing stringent requirements on digital currency exchanges, including potential life imprisonment for serious infractions.

On May 20, 2025, South Korea’s Financial Services Commission rolled out new guidelines for non-profit digital currency transactions and tightened the criteria for listings on exchanges.

Additionally, the South Korean Democratic Party initiated a Digital Asset Committee to craft policies related to cryptocurrencies and stimulate industry development.

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