South Korea introduces comprehensive digital asset legislation
- The Democratic Party proposed a “Digital Asset Basic Act” to regulate stablecoins and other digital assets.
- The act defines value-linked digital assets, requiring issuer authorization and refund reserves.
- Entities must meet capital thresholds, operational capacity, and reserve plans to issue digital assets.
- New licensing and reporting requirements will be established for businesses involved in trading, custody, and advisory services.
- A digital asset committee will oversee policy coordination and implementation plans for the sector.
This proposal aims to create a legal framework that enhances investor protection while fostering innovation in the digital asset landscape. It follows ongoing debates regarding the issuance of won-pegged stablecoins between the Bank of Korea and the Financial Services Commission.
The new act is designed to position South Korea as a leader in global digital finance by establishing clear rules for market conduct and operational standards.(Source)
