South Korea Fast-Tracks Digital Asset Act for Crypto Overhaul

South Korea is set to pass the Digital Asset Basic Act by January 2026, introducing a bank-led consortium model for stablecoins and comprehensive crypto regulation, aiming to balance financial stability and innovation.

South Korea is advancing a comprehensive regulatory framework for digital assets with its proposed Digital Asset Basic Act, aiming for passage by January 2026. The legislation introduces a consortium model for stablecoin issuance, requiring banks to hold a majority stake—over 50%—while allowing technology companies to participate as minority stakeholders. This approach is designed to balance financial stability with innovation, addressing concerns from the Bank of Korea about the impact of stablecoins on monetary policy. The act also seeks to clarify previously unregulated areas, set licensing standards, strengthen reserve protection, and expand anti-money laundering oversight. Lawmakers have set a December 10 deadline for the government to submit its proposal, warning that if unmet, they will introduce their own version. The agreement between ruling and opposition parties marks a significant step forward after months of negotiation and is expected to have a major impact on South Korea’s crypto market.