South Korea’s Democratic Party has put forward legislation that would establish a broad legal framework governing digital assets in the country. The proposed Digital Asset Basic Act would cover the issuance, trading, holding, and supervision of digital assets. The move signals an effort by the ruling party to bring greater regulatory clarity to the country’s crypto sector.
Under the proposed bill, entities that issue value-linked digital assets would be required to obtain formal authorization before operating. This includes issuers of stablecoins pegged to fiat currencies or backed by real-world assets. Those issuers would also be subject to strict reserve, capital, and operational standards designed to ensure financial stability and consumer protection.
The proposal reflects a broader ambition to position South Korea as a leading player in digital finance. Lawmakers behind the bill appear to be seeking a balance between fostering innovation and maintaining robust oversight of the rapidly evolving sector. The legislation would create a unified regulatory structure where currently fragmented rules apply.
The introduction of the bill coincides with a broader tightening of crypto-related regulations across the country. Domestic exchanges are now subject to new mandatory withdrawal delays, a measure introduced by regulators to combat fraudulent activity. These steps suggest that South Korean authorities are moving on multiple fronts to address risks associated with digital asset markets.
The Digital Asset Basic Act, if passed, would represent one of the most comprehensive pieces of crypto legislation in the region. It would bring together rules on issuance, market conduct, and institutional oversight under a single legal framework. The outcome of the legislative process will be closely watched by industry participants and regulators in other jurisdictions considering similar measures.
Originally reported by CoinDesk.
