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South Korea’s New Crypto Bill Sets $3.5M Minimum for Stablecoin Issuers – Can It Pass?

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South Korea is transferring nearer to passing a brand new crypto invoice that will require stablecoin issuers to carry a minimal of 5 billion gained ($3.5 million) in capital, as lawmakers search to formalize oversight of the digital asset market.

According to local reports, the Democratic Party’s Digital Asset Task Force, led by Chairman Lee Jeong-moon, convened its second plenary session on January 28 on the National Assembly Members’ Hall to debate legislative instructions primarily based on the invoice’s provisions.

Representative Ahn Do-geol, serving as job drive secretary, confirmed throughout a press briefing: “We agreed to set the authorized capital requirement for stablecoin issuers at the very least 5 billion gained.”

Stablecoin Capital Threshold Mirrors Electronic Money Standards

The proposal, a part of the forthcoming Digital Asset Basic Act, locations stablecoins nearer to conventional electronic money under Korean law at a time of heightened concern over market stability and capital flows.

Under the draft, any firm looking for to subject stablecoins in South Korea should meet the edge, aligning the rule with present necessities for digital cash corporations.

Lawmakers argue that as a result of stablecoins perform like digital money, issuers must be topic to comparable monetary safeguards.

The measure is meant to forestall undercapitalized corporations from issuing tokens with out adequate backing, decreasing the chance of abrupt collapses.

Officials say stronger steadiness sheets ought to assist issuers take in losses and handle operational dangers, limiting potential hurt to customers in periods of stress.

Beyond capital guidelines, the invoice introduces a brand new governance construction to handle market dangers extra successfully.

A proposed inter-ministerial physique, the Virtual Asset Committee, could be led by the chair of the Financial Services Commission.

Other members would come with the Bank of Korea’s deputy governor and a vice minister from the Ministry of Economy and Finance.

The committee is designed to coordinate fast responses to hacks, system failures, and main market disruptions.

The job drive plans ultimate coordination with the occasion’s coverage committee and related authorities our bodies earlier than introducing the invoice.

Lawmakers are concentrating on submission forward of the Lunar New Year vacation, which falls on February 17, 2026.

South Korea Central Bank Voices Concerns Over Stablecoin Risks

Despite progress on the invoice, key coverage disagreements stay unresolved.

Sensitive points such because the scope of the Bank of Korea’s authority and potential limits on main shareholder holdings are nonetheless beneath dialogue.

Bank of Korea Governor Lee Chang-yong has repeatedly raised considerations about stablecoins, significantly these linked to foreign currency.

Speaking on the Asian Financial Forum in Hong Kong, Lee warned that stablecoins may allow fast cross-border capital motion, weakening capital controls.

He mentioned the dangers would enhance if U.S.-dollar-pegged stablecoins had been related to U.S.-dollar-pegged tokens, permitting funds to exit the nation rapidly throughout market stress.

Those warnings come as regulators stay break up on whether or not stablecoin issuance must be restricted to bank-led consortia.

At the identical time, foreign money pressures have added to policymakers’ warning, with the gained sliding to 1,431.15 per greenback amid tariff threats from U.S. President Donald Trump.

South Korea's New Stablecoin Bill - USD/WON Image
Source: Google Finance

Corporate Crypto Access Expands After 9-Year Ban

The present regulatory enchancment aligns with South Korea’s current rollback of a 9-year ban on company crypto funding.

New pointers now enable listed corporations {and professional} traders to commerce digital property beneath outlined limits.

Under the Virtual Currency Trading Guidelines for Listed Corporations, corporations could be permitted to take a position as much as 5% of their fairness capital in top-20 cryptocurrencies by market worth.

The change represents the ultimate section of a three-step plan launched by the Financial Services Commission in February 2025.

Once applied, round 3,500 company entities are anticipated to realize entry to crypto markets, although discussions continue over whether or not dollar-pegged stablecoins similar to USDT shall be included.

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