The ruling party of South Korea proposed the "Basic Law on Digital Assets" to establish a banking-level regulatory framework for stablecoins

The ruling Democratic Party of Korea proposed the "Basic Law on Digital Assets" this Wednesday, aiming to establish a comprehensive legal framework for the issuance, trading, custody, and supervision of digital assets.

The bill categorizes value-related digital assets, such as stablecoins linked to fiat currency or real assets, as a special category, requiring issuers to obtain authorization and meet strict standards such as capital thresholds, reserve plans, and redemption obligations. In addition, the bill will introduce a licensing, registration, and information disclosure system for digital asset businesses, prohibit improper behaviors such as market manipulation and insider trading, and propose the establishment of a Digital Asset Committee to coordinate policy.