South Korea’s New President Moves To Legalize Stablecoins Through Crypto Bill

South Korea’s newly elected President, Lee Jae-myung, has proposed the Digital Asset Basic Act. The crypto bill allows local companies to issue stablecoins.

Lee – known as a progressive leader who defeated a conservative opponent – is moving quickly to deliver on promises made during his election campaigns. Lee also advocated for legalising spot crypto exchange-traded funds (ETFs). Notably, when it comes to crypto, both presidential candidates, liberal Lee and conservative Kim Moon-soo, had gone full pro-crypto with their election policies.

“Today, I would like to present a significant turning point for the future of digital finance in the Republic of Korea and to represent the basic law on digital assets,” said lawmaker Min Byeong-deok, introducing the bill, in a 10 June 2025 press conference.  

“Digital assets are no longer an experimental means,” he said. “Blockchain and artificial intelligence technology are already a key link between the global capital market and the established real economy infrastructure.” 

Stablecoins can be issued in Korea now? ELI5 on the new bill

South Korea’s National Assembly has introduced the country’s first Basic Act on Digital Assets which includes provisions on stablecoin issuance.

This is a significant milestone as it marks the first comprehensive… pic.twitter.com/WVXc7els6z

— 100y.eth (@100y_eth) June 10, 2025

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Criteria Stablecoin Issuers Need To Meet

According to the new bill, stablecoin issuers must obtain approval from the Financial Services Commission (FSC) and meet a few more eligibility criteria. The issuer must be a corporation established in South Korea and must have a minimum capital of at least KRW 500 million ($350k) with the specific amount to be defined by Presidential Decree.

Furthermore, the issuer must have a sound and viable business plan and must have the necessary physical infrastructure such as IT systems and qualified personnel as prescribed by Presidential Decree to protect users and perform its intended functions.

Stablecoins are now a top 20 holder of US treasuries

Bigger than Saudi Arabia, South Korea, UAE, Germany pic.twitter.com/ZhULykNZoV

— Sar Haribhakti (@sarthakgh) June 7, 2025

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South Korea’s Increased Retail Crypto Participation 

South Korea’s increased retail crypto participation, along with its experience in the past with crypto frauds, hastened new regulations through which the country intends to ensure greater transparency, security, and trust in the cryptocurrency ecosystem.

Strict regulations (Virtual Asset User Protection Act) were brought into focus in July 2024. They imposed strict requirements on crypto exchanges that included potential life sentences for criminal violations.

South Korea’s Financial Services Commission, on 20 May 2025, established new regulations for non-profit crypto transactions and tightened listing criteria for exchanges.

Furthermore, the South Korean Democratic Party kick-started a Digital Asset Committee to develop crypto policies and promote industry growth.

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