South Korea is moving closer to passing a new crypto bill that would require stablecoin issuers to hold a minimum of 5 billion won ($3.5 million) in capital, as lawmakers seek to formalize oversight of the virtual asset market.
According to local reports, the Democratic Party’s Digital Asset Task Force, led by Chairman Lee Jeong-moon, convened its second plenary session on January 28 at the National Assembly Members’ Hall to discuss legislative directions based on the bill’s provisions.
Representative Ahn Do-geol, serving as task force secretary, confirmed during a press briefing: “We agreed to set the legal capital requirement for stablecoin issuers at least 5 billion won.”
Stablecoin Capital Threshold Mirrors Electronic Money Standards
The proposal, part of the forthcoming Digital Asset Basic Act, places stablecoins closer to traditional electronic money under Korean law at a time of heightened concern over market stability and capital flows.
Under the draft, any company seeking to issue stablecoins in South Korea must meet the threshold, aligning the rule with existing requirements for electronic money firms.
Lawmakers argue that because stablecoins function like digital cash, issuers should be subject to comparable financial safeguards.
The measure is intended to prevent undercapitalized firms from issuing tokens without sufficient backing, reducing the risk of abrupt collapses.
Officials say stronger balance sheets should help issuers absorb losses and manage operational risks, limiting potential harm to users during periods of stress.
Beyond capital rules, the bill introduces a new governance structure to manage market risks more effectively.
A proposed inter-ministerial body, the Virtual Asset Committee, would be led by the chair of the Financial Services Commission.
Other members would include the Bank of Korea’s deputy governor and a vice minister from the Ministry of Economy and Finance.
The committee is designed to coordinate rapid responses to hacks, system failures, and major market disruptions.
The task force plans final coordination with the party’s policy committee and relevant government bodies before introducing the bill.
Lawmakers are targeting submission ahead of the Lunar New Year holiday, which falls on February 17, 2026.
South Korea Central Bank Voices Concerns Over Stablecoin Risks
Despite progress on the bill, key policy disagreements remain unresolved.
Sensitive issues such as the scope of the Bank of Korea’s authority and potential limits on major shareholder holdings are still under discussion.
Bank of Korea Governor Lee Chang-yong has repeatedly raised concerns about stablecoins, particularly those linked to foreign currencies.
Speaking at the Asian Financial Forum in Hong Kong, Lee warned that stablecoins could enable rapid cross-border capital movement, weakening capital controls.
He said the risks would increase if U.S.-dollar-pegged stablecoins were connected to U.S.-dollar-pegged tokens, allowing funds to exit the country quickly during market stress.
Those warnings come as regulators remain split on whether stablecoin issuance should be restricted to bank-led consortia.
At the same time, currency pressures have added to policymakers’ caution, with the won sliding to 1,431.15 per dollar amid tariff threats from U.S. President Donald Trump.
Source: Google Finance
Corporate Crypto Access Expands After 9-Year Ban
The current regulatory improvement aligns with South Korea’s recent rollback of a 9-year ban on corporate crypto investment.
New guidelines now allow listed companies and professional investors to trade digital assets under defined limits.
Under the Virtual Currency Trading Guidelines for Listed Corporations, firms would be permitted to invest up to 5% of their equity capital in top-20 cryptocurrencies by market value.
The change represents the final phase of a three-step plan introduced by the Financial Services Commission in February 2025.
Once implemented, around 3,500 corporate entities are expected to gain access to crypto markets, though discussions continue over whether dollar-pegged stablecoins such as USDT will be included.
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