South Korea Plans Structured Crypto Future With Stablecoin Rules and RWA Framework

South Korea is advancing a comprehensive regulatory push to bring tokenized real-world assets (RWAs) and stablecoins into its formal financial system, signaling a more structured approach to digital asset adoption.

The ruling Democratic Party has incorporated digital asset provisions into its proposed Digital Asset Basic Act, a long-anticipated framework designed to define how cryptocurrencies and blockchain-based financial products operate under existing laws.

A central feature of the proposal focuses on tokenized RWAs—blockchain representations of assets like real estate or bonds. Under the plan, issuers would be required to place the underlying assets into regulated trusts, aligning with the country’s Capital Markets Act. Additional operational details are expected to be outlined through a future presidential decree.

Stablecoins are also a key component of the proposal. Rather than treating them as speculative crypto assets, the bill classifies them as a recognized “means of payment” under foreign exchange regulations. This would place stablecoin issuers under the supervision of foreign exchange authorities without forcing them into a separate licensing regime.

To encourage practical usage, the framework introduces exemptions for smaller, everyday stablecoin transactions, removing the burden of foreign exchange reporting for routine payments. However, larger transfers would still be monitored, maintaining regulatory oversight where it matters most.

At the same time, policymakers are taking a cautious stance on incentives. The proposal reportedly bans interest or yield generation on unused stablecoin balances, a move that contrasts with some global platforms offering returns on digital dollar holdings.

Beyond usage rules, the legislation assigns South Korea’s Financial Services Commission the task of setting interoperability standards for stablecoins, ensuring compatibility across different systems. It also outlines plans for a unified disclosure regime to improve transparency across digital asset markets.

The Digital Asset Basic Act represents the country’s second major attempt to regulate the crypto sector. While initially targeted for completion in 2025, the bill has faced delays, but this latest proposal suggests momentum is building toward a more defined and enforceable digital asset framework.