South Korea to Pass Digital Asset Act in January After Bank-Led KRW Stablecoin Deal
South Korea’s major parties and financial regulator have agreed on a bank-led consortium model for won-denominated (KRW) stablecoins and are targeting passage of a revised Digital Asset Basic Act during an extraordinary National Assembly session in January. The government must file a formal bill by Dec. 10 or lawmakers will introduce their own draft. Under the agreed framework banks would hold majority stakes (>50%) in stablecoin-issuing consortia while tech firms and other participants may join, with coordinated oversight between the Bank of Korea and the Financial Services Commission. The law aims to align digital-asset rules with traditional finance by clarifying reserve requirements, issuance licensing, AML controls and stronger penalties; amendments to the Electronic Financial Transactions Act and capital-market protections for retail investors are also planned. The accelerated timeline and bank-centric structure put pressure on regulators, banks, exchanges and consumer groups to align quickly. Market observers say the law could set a regulatory precedent, shape stablecoin market structure in South Korea and affect institutional participation. Key names: Kang Joon-hyun (Democratic Party lawmaker). Primary keywords: South Korea digital asset act, stablecoin regulation, KRW stablecoin, bank-led consortium.
Neutral
The bank-led consortium model and clearer legal framework reduce regulatory uncertainty for KRW stablecoins, which is constructive for institutional participation and could support onshore stablecoin product development—factors that are typically bullish for stablecoin adoption. However, the requirement that banks hold majority ownership, tighter AML rules, and a compressed legislative timeline introduce operational and compliance constraints that may slow product rollout and limit non-bank issuers. Short-term market reaction is likely muted as stakeholders align on implementation details; price volatility for any native tokens tied to issuers is unlikely until licensing rules and consortium participants are finalized. Over the longer term, a stable, bank-supervised framework could expand institutional stablecoin usage in Korea and be positive for onshore liquidity, but the bank-centric structure may reduce competition and innovation compared with more open models. Considering these offsets, the immediate price impact is neutral.