South Korea’s New Crypto Bill Requires $3.5M Minimum for Stablecoin Issuers – Will It Pass?

South Korea is progressing towards passing a new cryptocurrency bill that mandates stablecoin issuers to maintain a minimum capital of 5 billion won ($3.5 million). This initiative aims to establish formal oversight over the cryptocurrency market.

Key Takeaways

South Korea is working on a new crypto bill requiring stablecoin issuers to hold a minimum of $3.5 million.
The legislation aims to enhance oversight of the cryptocurrency market and prevent issuers from being undercapitalized.
The proposal aligns stablecoin regulation with electronic money standards, reflecting operational safety.
An inter-ministerial committee will be established to address market risks and respond to disruptions.
There are ongoing discussions about the concerns raised by the Bank of Korea regarding stablecoins and overall market stability.

South Korea's New Crypto Bill Sets $3.5M Minimum for Stablecoin Issuers

In recent reports, the Democratic Party’s Digital Asset Task Force, headed by Chairman Lee Jeong-moon, held its second meeting on January 28 at the National Assembly Members' Hall to evaluate legislative directions outlined in the bill.

Task force secretary Ahn Do-geol confirmed in a press briefing: “We agreed to set the legal capital requirement for stablecoin issuers at least 5 billion won.”

Aligning Stablecoin Regulations with Electronic Money Standards

This proposal is part of the upcoming Digital Asset Basic Act and positions stablecoins closer to conventional electronic money under South Korean law, especially amid growing concerns about market stability.

According to the draft, any company intending to issue stablecoins in South Korea must comply with the capital threshold, mirroring existing regulations for electronic money companies.

Lawmakers assert that since stablecoins operate similarly to digital cash, their issuers should be subject to similar financial protections.

This measure aims to restrict undercapitalized firms from creating tokens without adequate backing, thereby mitigating the risk of sudden failures.

Officials believe that healthier balance sheets will allow issuers to absorb losses and manage operational risks, reducing potential harm to users during turbulent times.

In addition to the capital requirements, the bill proposes a new governance structure to address market risks more effectively.

A suggested inter-ministerial body, known as the Virtual Asset Committee, would be chaired by the head of the Financial Services Commission.

Its membership would include the Bank of Korea’s deputy governor and a vice minister from the Ministry of Economy and Finance.

The main purpose of this committee is to coordinate swift responses to cyberattacks, system failures, and significant market disturbances.

The task force is set to finalize discussions with the party’s policy committee and relevant government bodies before moving forward with the bill's introduction.

Lawmakers aim to submit the bill before the Lunar New Year holiday, which begins on February 17, 2026.

Bank of Korea Raises Concerns About Stablecoin Risks

Even though the bill is advancing, there are still significant policy disputes that remain unaddressed.

Key topics such as the extent of the Bank of Korea's authority and potential restrictions on major shareholder holdings are still being evaluated.

Bank of Korea Governor Lee Chang-yong has expressed ongoing concerns regarding stablecoins, particularly those tied to foreign currencies.

At the Asian Financial Forum in Hong Kong, he warned that stablecoins might facilitate rapid capital movement across borders, potentially undermining capital controls.

He noted that risks could heighten if U.S.-dollar-pegged stablecoins become linked with other U.S.-dollar-pegged tokens, as this could allow funds to exit the country swiftly during times of market strain.

These warnings arise as regulators are divided on whether to limit stablecoin issuance to bank-led consortia.

At the same time, currency pressures have made policymakers more cautious, particularly as the won dipped to 1,431.15 per dollar amid tariff threats from U.S. President Donald Trump.

South Korea's New Stablecoin Bill - USD/WON Image

Corporate Access to Cryptocurrency Expands After a Nine-Year Ban

This regulatory enhancement coincides with South Korea's recent lifting of a nine-year prohibition on corporate cryptocurrency investments.

New guidelines now permit listed companies and professional investors to trade digital assets within defined limits.

According to the Virtual Currency Trading Guidelines for Listed Corporations, firms will be allowed to invest up to 5% of their equity capital in the top 20 cryptocurrencies by market capitalization.

This shift represents the final part of a three-step plan initiated by the Financial Services Commission in February 2025.

Once implemented, approximately 3,500 corporate entities are expected to gain entry to the cryptocurrency markets, though discussions continue regarding the inclusion of dollar-pegged stablecoins such as USDT.