South Korea Unveils Draft Law for Comprehensive Digital Asset Regulation
South Korea has unveiled a draft law that would establish a comprehensive regulatory framework for digital assets. The proposed Digital Asset Basic Act would introduce licensing, registration, and reporting requirements for cryptocurrency businesses, including exchanges, custodians, brokers, and advisers.
The legislation also creates a dedicated legal framework for issuing and supervising stablecoins. Under the proposal, issuers of fiat- and asset-backed stablecoins would be required to obtain regulatory approval, maintain adequate capital, hold reserve assets to guarantee redemptions, meet operational standards, and adhere to governance requirements.
The bill aims to protect users by outlining refund reserve and redemption obligations. The legislation follows months of debate between the Bank of Korea and the Financial Services Commission over who should be allowed to issue Won-backed stablecoins.