South Korea is moving quickly to finish a new digital asset law by January, after ruling and opposition lawmakers finally reached an agreement on how to handle stablecoins — an issue that had been blocking progress for months.
Lawmakers on both sides agreed on a model where banks lead the issuance of won-based stablecoins, but tech companies can still take part. According to a Dec. 1 report from Maeli Business Newspaper, this setup aims to protect monetary stability while still leaving room for private-sector innovation. Officials say this framework could form the base of a uniquely “Korean-style stablecoin,” with clear rules on reserves and how the tokens are issued.
Government faces a deadline
Kang Joon-hyun, a senior lawmaker from the Democratic Party, said the government must submit its official proposal by December 10. If it doesn’t, lawmakers will move forward with their own version of the bill. The goal is to pass the final legislation during the National Assembly’s special session in January, after coordinating with the ruling People Power Party and the president’s office.
The bill builds on the Digital Asset Basic Act that passed earlier this year. That earlier law set rules for licensing digital asset issuers, protecting reserves, and making sure virtual asset service providers follow compliance requirements. The new act aims to close remaining gaps and treat digital assets more like traditional financial products. It also sets clearer guidelines for U.S.-based stablecoins like USDT and USDC, which continue to dominate the market in Korea.
Authorities say it’s important to move quickly because crypto use in Korea is rising fast — especially among people ages 20 to 50. Some worry that local companies are falling behind countries like the U.S., the EU, and Japan, all of which strengthened stablecoin rules in 2025.
More reforms on the way
Lawmakers also discussed other financial reforms, including updates to the Electronic Financial Transactions Act. This comes after several hacking incidents at major financial companies. The new changes would increase penalties and improve enforcement after breaches.
The government is also working with opposition parties on capital-market reforms. These include introducing mandatory tender offers in certain corporate situations and updating how shares are allocated, so regular investors get a fairer chance.
