South Korea Pushes for Stricter Crypto Oversight With New Bill Backed by Presidential Support

10. Jun 2025 Posted by Laurent C. on News

South Korea is doubling down on its crypto regulation efforts as lawmaker Min Byeong-deok introduces a sweeping legislative proposal aimed at tightening the country's grip on the rapidly growing digital asset sector. The new bill, dubbed the Digital Asset Basic Act, was unveiled Tuesday and is set to expand the current legal framework with a focus on stablecoins and broader industry governance.

Min, who represents the ruling Democratic Party and previously led the digital asset committee for President Lee Jae-myung’s campaign, positioned the bill as essential infrastructure for South Korea’s ambitions in the global digital economy. He stated that the legislation would "lay the foundation for a secure and transparent market that supports innovation while protecting domestic capital."

This proposal builds upon the Virtual Asset Investor Protection Act, which came into force in July 2024. While that earlier law concentrated on safeguarding retail investors, the new bill shifts focus toward institutional oversight and market structure.

Key Features of the New Proposal

  • Stablecoin Licensing Regime: Issuers would be required to obtain licenses and hold a minimum of 500 million Korean won (~$367,890) in owner's equity.

  • National Digital Asset Committee: A presidentially overseen body would be created to coordinate regulation and development of digital assets.

  • Legal Definitions and Accountability: The bill outlines a legal framework for digital assets, including how they apply to exchanges and wallet providers. It also proposes penalties for manipulative or unfair practices in the crypto market.

The stablecoin provision directly supports President Lee’s campaign pledge to develop a won-backed stablecoin ecosystem, aiming to reduce dependence on foreign-pegged digital currencies and mitigate capital flight. The bill draws parallels with regulatory approaches in the U.S., EU, and Japan—regions that have moved to regulate the issuance, trading, and circulation of crypto assets more comprehensively.

Stablecoin laws are also surfacing globally. In the U.S., the Genius Act—championed by President Donald Trump—is under consideration, while Hong Kong recently passed legislation requiring stablecoin issuers to be licensed.

Min emphasized that South Korea must keep pace with global regulatory trends: “To remain competitive, we must create a clear and consistent environment for digital finance while ensuring strong consumer protections.”

The Digital Asset Basic Act is expected to undergo legislative review in the coming months, with strong backing from the President’s office signaling a high likelihood of passage. If enacted, it would mark one of the most comprehensive digital asset regulatory regimes in Asia.