South Korea’s ruling Democratic Party has set up a Digital Asset Task Force to draft rules for cryptocurrencies and won-based stablecoins before December. The initiative seeks a legal framework spanning issuers, banks, exchanges, and the Bank of Korea while balancing innovation with financial stability and limiting capital outflows. The plan includes a dedicated policy for won stablecoins and completion of the Digital Asset Basic Act.
The task force aims to preserve innovation while protecting financial stability and limiting capital outflows, building a legal frame that covers issuers, banks, exchanges, and the Bank of Korea. A dedicated policy for won stablecoins will require issuers to hold at least KRW 500 million in capital and maintain 100% reserves equal to coins issued. The plan reduces reliance on dollar stablecoins and supports monetary sovereignty.
The Digital Asset Basic Act will expand the legal definition of digital assets to include security tokens and allow the Financial Services Commission to probe and punish manipulation or insider trading. The party will hold public hearings with exchanges and fintechs and aims to pass the bill this year.
Market participants are already positioning around won stablecoins: Woori Bank backs the coin KRW1, and KakaoBank has filed the brands KRWGlobal and KRWKaia.
South Korea and stablecoins
Supervisory roles remain under discussion, with the Bank of Korea seeking a lead role because stablecoins affect monetary policy, while lawmakers prefer balanced oversight that does not block new products. The Financial Services Commission is also studying spot Bitcoin and other crypto ETFs and may let crypto firms claim venture tax breaks.
Next step: the party will push the Digital Asset Basic Act toward a parliamentary vote before the end of the year. If passed, the framework would formalize oversight while supporting monetary sovereignty and market development, with the balance between the FSC and the Bank of Korea shaping the pace and strictness of implementation.
