The ruling government is advancing the South Korea stablecoin bill today, targeting digital asset regulation. The proposal would classify stablecoins as foreign exchange payment instruments under existing financial laws.
The move could reshape cross-border crypto payments and increase oversight of digital asset transactions. According to the Seoul Economic Daily, the bill also introduces new custody rules for tokenized real-world assets.
If passed, the South Korea stablecoin bill will merge these crypto assets into the Foreign Exchange Transaction Act. As such, related business operations will be subject to regulation by financial authorities but will not require separate licenses.
The proposed regulatory structure mirrors global attempts at regulating stablecoins using traditional financial regulations. Furthermore, it suggests increased scrutiny of cross-border digital asset transfer and settlement methods.
The South Korea stablecoin bill primarily targets stablecoin use in cross-border transactions. Under certain conditions, some cross-border payments made for goods or services may have reporting exemptions.
However, stablecoin issuers will be prohibited from providing interest to holders. Technical standards for the interoperability of different blockchain networks are also planned by the authorities.
The Financial Services Commission will oversee compliance with these standards to ensure consistency. Exchanges, payment service providers, and stablecoin issuers who engage in business activities in South Korea may be impacted by the bill.
Additionally, the bill may influence cross-border liquidity in international cryptocurrency trading markets.
Also Read | South Korea Enforces 3 New Tough Crypto Rules to Prevent Exchange Failures
In addition to creating an RWA tokenization law utilizing existing financial regulations, the bill includes strict guidelines regarding the tokenization of real-world assets (RWAs).
Issuers must maintain underlying assets in managed trusts under the Capital Markets Act to tokenize real-world assets. The provision essentially creates a reserve backing requirement for tokenized assets and provides protections through custodial rules.
The approach to regulating digital asset issuance utilizes similar oversight structures as those used in traditional finance sectors in South Korea. Unlike the EU’s MiCA framework, which defines stablecoins as electronic money tokens, this model uses a more traditional approach.
Key provisions contained in the South Korea stablecoin bill remain up for debate among lawmakers. Limitations placed on exchange ownership and banking requirements were not incorporated into the legislative draft.
Prior disagreements delayed passage of the Digital Assets Basic Act. There are still concerns regarding the clarity of South Korea crypto regulations.
Bank of Korea governor Lee Chang-yong expressed concerns about risks associated with won-based stablecoins. He indicated possible disruption to both capital flows and the stability of foreign exchange.
The draft could not be independently verified by any filing of the National Assembly.
South Korea’s stablecoin bill will have a huge effect on how cross-border cryptocurrency transactions are processed by regulated financial systems.
Also Read | France and South Korea Pioneer Revolutionary Tokenized Cross-Border Payments in 2026
