South Korea unveils digital asset law and tokenized bonds

South Korea will introduce a Digital Asset Framework Act, regulate stablecoins and Bitcoin ETFs, and pilot tokenized government bonds linked to its wholesale CBDC.

South Korea has unveiled a comprehensive strategy to boost its digital asset sector, highlighted by the introduction of the Digital Asset Framework Act in the second half of 2026. This legislation will set clear rules for digital asset issuance, distribution, disclosures, industry oversight, and stablecoins. It will also support amendments to allow spot Bitcoin ETFs, aligning with global regulatory trends. The government plans to regulate cross-border stablecoin transactions and expand oversight to digital asset businesses and stablecoin issuers. These measures aim to enhance transparency and investor protection in the rapidly evolving crypto market. As part of its 2026 Economic Growth Strategy, South Korea will launch a pilot program in 2027 to tokenize government bonds on a blockchain linked to the Bank of Korea’s wholesale CBDC. This initiative will test the efficiency and interoperability of CBDC infrastructure, moving sovereign debt tokenization from concept to real-world application.