South Korea's Capital Requirements for Stablecoin Issuers: New Regulatory Wave Ahead

South Korea’s Democratic Party is preparing to unveil groundbreaking legislation that would establish strict capital reserves for stablecoin issuers. The proposed rule mandates that all stablecoin operators maintain a minimum capital base of 5 billion won, roughly $3.6 million, according to reporting from NS3.AI. This regulatory move signals a major shift in how South Korea approaches digital asset oversight.

Policy Framework Takes Shape

The capital requirement initiative forms a cornerstone of the broader Digital Asset Basic Act, which lawmakers plan to unveil before the Lunar New Year break. Beyond the capital threshold, party members continue deliberating other crucial regulatory aspects, including the specific authorities to be granted to the Bank of Korea and limitations on who can become a major shareholder in stablecoin issuance operations.

Implications for the Industry

The proposed framework represents South Korea’s determination to bring structure and accountability to the stablecoin market. By establishing capital requirements, regulators aim to ensure that issuers possess sufficient financial cushion to back their digital tokens, protecting investors and maintaining market stability. The timing—just before the Lunar New Year—suggests the Democratic Party intends to push this legislation forward as a priority for the new legislative session.