South Korea's new bill enables domestic stablecoin issuance backed by the won.
Stablecoin trades hit $42B in Q1 across top South Korean exchanges.
US GENIUS Act delays may push full regulation past 2029.
South Korea has developed new regulations to legalize stablecoins which positions it at the forefront of digital asset policy compared to the United States. The Digital Asset Basic Act enabling domestic stablecoin issuance was introduced by President Lee Jae-myung's ruling Democratic Party. The proposal represents an important measure to synchronize national regulations with South Korea's expanding digital finance industry.
Digital Asset Bill Aims to Boost Domestic Crypto Framework
The bill proposes clear conditions for stablecoin issuance by local companies. Entities must hold a minimum equity capital of 500 million won, which is approximately $368,000. They are also required to gain approval from the Financial Services Commission and maintain adequate reserves for investor redemptions.
According to the latest Bloomberg report, President Lee’s administration is pushing for swift passage of the bill. The proposal supports his campaign promise to encourage digital asset innovation. South Korea plans to back its stablecoins with the national currency, the won, to safeguard economic interests and limit capital outflow.
The Financial Services Commission will act as the key supervisory authority. It will oversee licensing, compliance, and capital standards. The aim is to create a balanced system where innovation can coexist with consumer protection and financial stability.
Broader Crypto Initiatives Gain Momentum
The South Korean government is studying new strategies to grow its crypto market besides regulating stablecoins. The national pension fund is considering digital asset investments while the government plans to establish a national reserve of Bitcoin. The initiatives aim to solidify South Korea's standing in the international digital finance field over the long term.
Bank of Korea statistics reveal increasing domestic stablecoin interest. Stablecoin trading across five major South Korean exchanges reached approximately $42 billion during the first quarter. The data presents compelling evidence of high user interest which necessitates the development of clear regulatory guidelines.
Discussions are ongoing about potential changes to anti-money laundering regulations. The proposed modifications seek to boost foreign investor engagement and enhance platform compliance standards.
US Regulation Faces Delays as GENIUS Act Stalls
South Korea is advancing its cryptocurrency strategy while the United States is experiencing legislative delays. The Senate has not yet conducted the final vote needed to pass the GENIUS Act which aims to regulate stablecoins. Even with procedural improvements made by Senator John Thune the future of the bill's approval continues to be unpredictable.
Legal experts show worries about extended delays in the legislative process. Various projections predict that the US will likely establish full stablecoin regulations no earlier than the year 2029. The ongoing postponement could result in a regulatory gap since countries like South Korea proceed with definitive policies.
South Korea’s government demonstrates a cohesive approach in its strategic planning. Its quick legislative progress could enable the country to capture a significant share of digital asset activity in the Asia-Pacific region and beyond.
