South Korea Sets Stablecoin Capital Threshold in New Crypto Bill

South Korea sets stablecoin capital rules but remains divided on issuer eligibility and exchange ownership limits.

South Korea’s lawmakers aim to set clear rules for stablecoin issuers while strengthening market oversight. A new bill will introduce capital standards and a joint government body to handle risks. Some major policy points remain unresolved and will be discussed further. 

Korea’s Ruling Party Finalizes Crypto Bill Ahead of Lunar New Year

The Democratic Party of Korea has settled on the name of its crypto legislation as the Digital Asset Basic Act. Lawmakers plan to submit the bill before the Lunar New Year holiday. The bill sets out to formalize the virtual asset market and set minimum standards for key players. 

At the second plenary task force meeting, members agreed on a minimum capital rule for stablecoin issuers. According to Task force secretary Ahn Do-geol, companies issuing such tokens must hold at least 5 billion won in capital.

Under the draft law, any company issuing stablecoins in Korea must meet the capital threshold before operating. Supporters argue the rule will prevent underfunded firms from releasing tokens without proper backing. Regulators also see the measure as a way to protect users and limit damage during market stress.

The task force plans further talks with the party’s policy committee and government agencies. Final coordination is expected before the bill is formally introduced to the National Assembly.

New Policy Talks in South Korea Hit Roadblocks Over Stablecoins

As part of the proposal, South Korea lawmakers agreed to establish an inter-ministerial consultative body tentatively named the Virtual Asset Council. Its role will be to coordinate government action during emergencies, including hacking cases and technical incidents affecting the market.

Meanwhile, the council’s leadership will fall to the head of the Financial Services Commission. Senior officials from various sectors in the country will also take part.

Although the central bank called for unanimous voting, the task force dismissed the proposal. Members pointed to slower decision-making and concerns over concentrating authority within a single institution.

However, differences remain among lawmakers and government officials on several key points. One major dispute centers on who should be allowed to issue stablecoins. 

On the other hand, some officials support a structure where banks hold controlling stakes, while others warn that such limits could reduce competition. Rep. Lee Kang-il said opinions are still divided, with mediation options under discussion.

Another unresolved topic involves ownership limits for major shareholders of crypto exchanges. Industry groups have strongly criticized proposed restrictions with warnings of negative business effects.

According to one of the council reps, consensus has formed around the rule’s intent, but members differ on when it should apply. Lawmakers must decide whether to include the rule in the initial bill or adopt a phased approach.

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