South Korea New Bill: Can Companies Make Their Own Stablecoins Now?

South Korea is making waves in the cryptocurrency world with a new bill that could let companies issue their own stablecoins. Stablecoins, digital tokens pegged to assets like the U.S. dollar or South Korean won, are popular for their price stability compared to volatile cryptocurrencies like Bitcoin. 

This proposed legislation, known as the Digital Asset Basic Act, comes under the leadership of President Lee Jae-myung, who took office in June 2025 and has championed crypto-friendly policies. With South Korea’s vibrant crypto market—home to 18 million investors—this move could reshape digital finance in Asia’s tech hub. But what does the bill entail, and can companies really start creating stablecoins? Let’s dive into the details, exploring the bill’s requirements, implications, and challenges. 

What Is the Digital Asset Basic Act?

The Digital Asset Basic Act, proposed by South Korea’s ruling Democratic Party in June 2025, aims to regulate and promote stablecoin issuance by domestic companies. According to reports, the bill allows firms with at least 500 million won (approximately $368,000) in equity capital to issue stablecoins, provided they maintain reserves to guarantee refunds. These tokens must be pegged to stable assets, such as the South Korean won or major fiat currencies, to ensure reliability. 

The Financial Services Commission (FSC) will oversee approvals, ensuring compliance with strict financial standards. This legislation builds on South Korea’s existing crypto framework, like the Virtual Asset User Protection Act, and reflects President Lee’s campaign promise to foster a won-based stablecoin market. By setting clear rules, the bill seeks to boost transparency and competition in one of the world’s most active crypto markets, where stablecoin trading hit 57 trillion won ($42 billion) in Q1 2025.

Why Is South Korea Pushing for Stablecoins?

South Korea’s push for stablecoin regulation stems from its desire to modernize finance and curb capital outflows. President Lee Jae-myung has emphasized that a won-based stablecoin market could prevent “national wealth from leaking overseas,” as many investors use dollar-pegged tokens like USDT and USDC. In Q1 2025, South Korean exchanges moved $40.6 billion abroad, nearly half in stablecoins, raising concerns about economic leakage. 

By enabling local firms to issue won-pegged tokens, the government hopes to keep money within the country while fostering innovation in fintech. The bill also aligns with global trends, as regions like Hong Kong and the U.S. advance their own stablecoin laws. Additionally, South Korea’s tech giants, like KakaoPay, stand to benefit, with shares surging 18% after the bill’s announcement. For a nation with 15 million crypto investors, this move could solidify South Korea’s position as a leader in digital finance, but it’s not without risks.

What Are the Requirements for Companies?

To issue stablecoins under the Digital Asset Basic Act, companies must meet stringent criteria. First, they need at least 500 million won in equity capital, ensuring only financially stable firms qualify. Second, issuers must back their tokens with reserves, such as cash or liquid assets, to protect users and guarantee refunds. The Financial Services Commission will review applications, enforcing compliance with anti-money laundering rules and transparency standards. 

These requirements aim to prevent repeats of past failures, like the 2022 collapse of Terra’s algorithmic stablecoin, which burned South Korean investors. While the rules are strict, they’re designed to build trust in a market where stablecoins are already popular. For example, Kaia, a blockchain backed by Kakao, has pledged to launch a won-pegged stablecoin, leveraging its digital wallet infrastructure. However, smaller firms may struggle to meet the capital threshold, potentially limiting participation to larger players. This balance between regulation and accessibility will shape the bill’s success.

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Opportunities and Challenges of the Bill

The Digital Asset Basic Act opens exciting opportunities but also faces hurdles. On the positive side, it could drive innovation, enabling companies like KakaoPay and Kaia to create stablecoins tailored for South Korea’s market. This could boost local fintech, attract global investors, and reduce reliance on foreign stablecoins. The bill’s focus on transparency may also rebuild trust after the Terra debacle, encouraging more of South Korea’s 18 million crypto users to adopt regulated tokens. 

However, challenges loom. The Bank of Korea has warned that private stablecoins could undermine monetary policy, potentially destabilizing the won. Critics also worry about regulatory gaps, as managing stablecoins is complex. Smaller firms may find the $368,000 capital requirement prohibitive, concentrating power among big players. Additionally, President Lee’s ongoing legal issues could delay or complicate implementation. Despite these risks, the bill’s potential to position South Korea as a crypto hub makes it a bold step forward.

Conclusion

South Korea’s Digital Asset Basic Act marks a pivotal moment for stablecoins and the country’s crypto industry. By allowing companies with sufficient capital to issue won-pegged tokens, the bill aims to keep wealth local, foster innovation, and strengthen South Korea’s role in global digital finance. President Lee Jae-myung’s crypto-friendly agenda has sparked optimism, with firms like Kaia and KakaoPay poised to lead the charge. 

Yet, the path isn’t smooth—strict regulations, central bank concerns, and past scandals like Terra’s collapse highlight the need for careful execution. For businesses and investors, this bill offers a chance to engage with a regulated stablecoin market, but success depends on balancing innovation with stability. As South Korea navigates this bold experiment, the world is watching. Stay informed, as this could redefine how stablecoins shape finance in one of Asia’s tech powerhouses.

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FAQ

What is the Digital Asset Basic Act in South Korea?

The Digital Asset Basic Act is a proposed bill introduced in June 2025, allowing South Korean companies with at least 500 million won ($368,000) in equity capital to issue stablecoins. It aims to regulate tokens pegged to assets like the won, ensuring transparency and reserve backing.

Who can issue stablecoins under this bill?

Companies with a minimum of 500 million won in equity capital can apply to issue stablecoins. They must maintain reserves and gain approval from the Financial Services Commission to ensure compliance.

Why is South Korea promoting stablecoins?

The government wants to reduce capital outflows, as many investors use foreign stablecoins like USDT. A won-based stablecoin market could keep wealth local, boost fintech, and position South Korea as a crypto leader.

What are the risks of this bill?

The Bank of Korea warns that private stablecoins could disrupt monetary policy. High capital requirements may exclude smaller firms, and past failures like Terra raise concerns about stability. Regulatory gaps could also pose challenges.