Through this, South Korea’s new President, Lee Jae-myung, intends to further advance stablecoins in the region, with him being a supporter of stablecoin adoption. On 10 June 2025, the ruling Democratic Party proposed the Digital Asset Basic Act, focused on increasing transparency and facilitating competition in the crypto sector. The act gives South Korean companies the ability to issue stablecoins if they have a minimum of USD 367,876 in equity capital, while ensuring that refunds are guaranteed through reserves.
Before this, South Korea had been a hub for crypto activity, with over a third of the population participating in digital-asset markets. Now, the act seeks to further support this growth, also stipulating that asset-linked digital assets, including stablecoins, must be approved by the Financial Services Commission, the text of the act released by the ruling party.
However, the central bank is opposing President Lee Jae-myung’s initiative, with the Bank of Korea’s Governor Rhee Chang-yong warning in May 2025 that stablecoins issued by non-bank entities could negatively affect the effectiveness of monetary policy. Also, he mentioned that the central bank should take charge of regulating a won-pegged stablecoin.
Back at the beginning of January 2025, South Korea’s Financial Services Commission considered relaxing its restrictions on institutional participation in cryptocurrency trading. The move would have enabled institutional investors to open accounts on local crypto exchanges, which were predominantly limited to retail traders. The proposed changes fell in line with the former President’s campaign pledge to support the growth of the domestic cryptocurrency industry. Also, the ruling People Power Party had backed initiatives to launch cryptocurrency-related financial products, such as spot exchange-traded funds (ETFs), which were unavailable in South Korea.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now