Today the ruling Democratic Party of Korea introduced the Basic Digital Asset Act at a press conference. The draft legislation aims to allow non banks and payment providers to issue stablecoins, and also relaxes rules for crypto exchanges, enabling them to participate in lending and choose which tokens to list.
Under this proposed framework, instead of the Bank of Korea (BOK) approving stablecoin issuers, that authority will fall to the Financial Services Commission. The legislation also significantly reduces regulatory barriers, setting a modest capital requirement of won 500 million ($365,000) for issuers, down from a previously proposed won 5 billion.
“Digital assets have a low equity capital ratio because they are structured to guarantee a refund based on reserves,” said Representative Min Byeong-deok. He said the intention was “to ease the barriers to entry into the system while clearly establishing measures to protect investors.” Mr Min emphasized the need for speed, implying there’s an international race to host issuers.
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