South Korea ruling party finalises ’Digital Assets Basic Act’, sets stablecoin issuer minimum capital at ~$3.5M
South Korea’s ruling Democratic Party has finalised the name and core measures of a proposed law to regulate virtual assets, titled the "Digital Assets Basic Act." The party plans to submit the bill before the Lunar New Year holiday. A key provision sets a minimum statutory capital requirement for stablecoin issuers at 5 billion won (about $3.5 million). Other sensitive elements — including the central bank’s authority and limits on major shareholders’ holdings — will be resolved through further coordination with policy committees. The announcement aims to provide clearer regulation for the crypto market; details and final provisions remain subject to inter-agency negotiation and legislative processing.
Neutral
The announcement provides regulatory clarity by setting a concrete minimum-capital requirement for stablecoin issuers (5 billion won / ~$3.5M), which can reduce uncertainty and compliance risk — a stabilising factor. However, unresolved, influential items such as central bank authority and major-shareholder limits remain undecided; those could materially affect issuer behavior, market access, and systemic risk depending on final outcomes. Historically, clearer regulatory frameworks tend to be neutral-to-slightly-bullish for regulated onshore crypto activity but can be bearish short-term if rules are restrictive. For traders: expect reduced regulatory uncertainty (supportive for market confidence) but monitor follow-up negotiations and legislative text for potentially restrictive provisions that could limit issuer activity or market liquidity. Short-term: low volatility impact unless drafts introduce strict constraints. Long-term: if implemented reasonably, likely supportive of stablecoin market maturation and deeper institutional participation in Korea; if overly restrictive, could push activity offshore, reducing local liquidity.