South Korea Moves to Finalize New Digital Asset Act by January After Breakthrough on Stablecoin Rules

Source: DefiPlanet Original Title: South Korea Moves to Finalize New Digital Asset Act by January After Breakthrough on Stablecoin Rules Original Link:

Quick Breakdown

• South Korean lawmakers have agreed on a new consortium model for issuing won-based stablecoins.
• The government must submit its proposal by December 10 or lawmakers will advance their own version.
• Additional reforms will tighten security rules and update capital-market regulations.

South Korea is accelerating efforts to complete its next major crypto regulatory framework by January, following a long-awaited political agreement on how the country should structure its domestic stablecoin market.

Lawmakers agree on ‘Korean-Style’ stablecoin model

Talks had been stalled for months over who should control the issuance of won-backed stablecoins. But a closed-door meeting between ruling and opposition lawmakers on December 1 resolved the deadlock, according to local outlet Maeli Business Newspaper.

South Korea to force bank-majority stablecoin consortia (≥51%), levy 3% sales penalty for breaches and up to ₩50M fines for noncompliance; Digital Assets Basic Act fast-tracked by December. My take: strengthens consumer protection but risks sidelining crypto startups.

Both sides endorsed a consortium model where banks retain majority control while allowing participation from tech companies. The arrangement is designed to satisfy the Bank of Korea’s concerns about monetary stability while still leaving room for private-sector innovation.

Officials say the model provides the foundation for a “Korean-style stablecoin” one with strict reserve requirements, transparent issuance rules, and clearly defined oversight.

Government faces December 10 deadline

Senior Democratic Party lawmaker Kang Joon-hyun stated that the government must deliver its official bill to the National Assembly by December 10. If not, lawmakers intend to advance their own draft.

The goal is to pass the legislation during January’s extraordinary session after coordination with the ruling People Power Party and the president’s office.

This upcoming act expands on the earlier Digital Asset Basic Act, which introduced licensing rules for issuers, reserve protections, and compliance standards for virtual asset service providers. The new bill aims to close remaining regulatory gaps by aligning digital assets more closely with traditional financial products. It will also establish clearer guidelines for foreign stablecoins like USDT and USDC, a growing priority as global issuers dominate Korea’s market.

Regulators warn that delays could leave South Korean companies lagging behind the U.S., EU, and Japan, all of which strengthened stablecoin rules in 2025. Crypto adoption remains high domestically, particularly among citizens aged 20 to 50.

Additional financial reforms underway

Lawmakers also discussed parallel reforms targeting security and capital-market integrity. Following several major hacks in the financial sector, the government plans to amend the Electronic Financial Transactions Act, introducing tougher penalties and stricter post-incident enforcement.

Other proposals under review include mandatory tender offers in certain corporate scenarios and changes to share-allocation rules to improve access for retail investors.