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TLDR:
- South Korea’s Democratic Party will submit the Digital Asset Basic Law before Lunar New Year holiday begins.
- Stablecoin issuers must maintain minimum statutory capital of 5 billion KRW, mirroring electronic money rules.
- New Virtual Asset Committee will be chaired by Financial Services Commission with inter-ministerial members.
- Committee will provide rapid response mechanism for market disruptions including hacks and system failures.
South Korea’s Democratic Party has completed preparations for comprehensive cryptocurrency legislation ahead of the Lunar New Year.
The Digital Asset Basic Law establishes clear requirements for stablecoin issuers, including a minimum capital of 5 billion KRW.
A new Virtual Asset Committee will oversee market operations and emergency responses. The legislative push represents a significant step toward the formal integration of digital assets into the country’s financial system.
Stablecoin Issuers Face Capital Requirements
The Democratic Party’s Digital Asset Task Force convened its second plenary session on January 28 at the National Assembly Hall. Representative Lee Jung-moon chairs the task force responsible for finalizing the legislative framework.
The group reached consensus on establishing 5 billion won as the minimum statutory capital for entities seeking to issue stablecoins.
Representative Ahn Do-geol confirmed the capital requirement decision during a briefing following the meeting. “We agreed to set the legal capital requirement for stablecoin issuers at least 5 billion won,” Ahn stated.
The 5 billion won threshold mirrors existing regulations under the Electronic Financial Transactions Act. Electronic money businesses currently operate under this same capital standard.
Lawmakers justified the requirement by citing functional similarities between stablecoins and electronic money products. The task force plans to submit the bill for deliberation before the Lunar New Year holiday begins.
Party policy committees and government authorities will conduct final coordination on outstanding issues. The legislative timeline reflects urgency in establishing regulatory clarity for the virtual asset market.
Some elements remain unresolved pending further discussion. The Bank of Korea’s jurisdictional scope requires additional deliberation among stakeholders.
Restrictions on major shareholder ownership in stablecoin issuers also need policy committee review. These sensitive matters will be addressed through subsequent coordination efforts.
Virtual Asset Committee to Manage Market Risks
The legislation creates a new inter-ministerial body called the Virtual Asset Committee. The Financial Services Commission chairman will lead this consultative organization.
The Bank of Korea deputy governor will serve on the committee. The vice minister of the Ministry of Economy and Finance will also participate in committee operations.
The committee structure enables coordinated responses to market disruptions. Hacking incidents and system failures fall under the committee’s purview.
Members can convene quickly to address emerging threats to market stability. The arrangement facilitates communication between regulatory agencies and financial authorities.
The Digital Asset Basic Law represents the formal title for the comprehensive legislation. Previous discussions referred to the measure using various working titles.
The Democratic Party settled on this designation to reflect the law’s foundational nature. The name emphasizes the bill’s role in establishing basic principles for digital asset governance.
Market participants have awaited regulatory clarity on stablecoin operations. The legislation addresses issuance requirements and supervisory frameworks systematically.
The 5 billion won capital standard provides concrete guidance for prospective issuers. The Virtual Asset Committee offers institutional infrastructure for ongoing market oversight and risk management.
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