South Korea Advances Digital Assets Regulation: Stablecoin Issuers to Meet 5 Billion Won Capital Requirement

South Korea’s ruling Democratic Party has made significant progress on its digital asset regulatory agenda. The party has finalized the legislation framework, formally titled the “Basic Law on Digital Assets,” with plans to introduce it to parliament in early 2026. A key component of this framework establishes mandatory capital requirements for entities looking to issue stablecoins—a regulatory move aimed at protecting market participants and ensuring issuer stability. The minimum legal capital requirement has been set at 5 billion won, which translates to approximately 3.5 million USD based on current exchange rates.

Stablecoin Capital Requirements: Converting Won to USD Standards

The 5 billion won threshold represents a substantial financial barrier for potential stablecoin issuers operating in or targeting the Korean market. In USD terms, this minimum translates to roughly 3.5 million dollars, positioning South Korea among markets with relatively stringent capital requirements for stablecoin operators. This capital baseline ensures that only well-capitalized entities can enter the stablecoin issuance space, reducing the risk of underfunded projects and enhancing market credibility.

Remaining Regulatory Details Under Negotiation

While the capital requirements framework is locked in, several critical regulatory matters remain unresolved. These include the precise scope of the central bank’s supervisory authority over digital assets and restrictions on major shareholder concentration. Policy officials have indicated that these sensitive issues will be finalized following further coordination with the relevant policy committee before final passage.