South Korea's Ministry of Economy and Finance will advance the Digital Asset Basic Act in the latter half of 2026, aiming to integrate digital assets into the national asset management system. This legislation will regulate the issuance, trading, and custody of digital assets, facilitating the introduction of spot Bitcoin ETFs and tokenized bonds.
Key Features of the Digital Asset Basic Act
Initially proposed by the ruling Democratic Party in June 2025, details of the act have been confirmed as of April 2026. The upcoming bill organizes digital assets into two categories: “general” and “asset-linked.” The latter includes stablecoins and similar instruments that will face more stringent compliance measures.
- The minimum capital requirement for certain digital asset issuers is set at KRW 500 million (approximately $360,000).
- Stablecoin issuers must meet licensing standards and maintain sufficient reserves under the oversight of the Financial Services Commission.
Future Plans for Digital Assets
In addition to regulating digital assets, South Korea intends to amend its Capital Markets Act to accommodate spot digital asset ETFs, starting with Bitcoin. The government is also planning to pilot tokenized government bonds by 2027, linking this initiative with its broader Central Bank Digital Currency goals and exploring blockchain interoperability.
Challenges to the execution of this regulatory framework remain, especially concerning the ambitious timeline for passing the act and the potential adjustment of the capital requirement during legislative discussions.
This material is informational and not financial advice.
