Korea Targets Second Half 2026 Passage of Comprehensive Crypto Regulation

The South Korean government has announced plans to advance the Digital Asset Basic Act in the second half of 2026. This legislation aims to bring cryptocurrency firmly into the nation's formal asset management system, covering issuance, trading, custody, and supervision of digital assets.

The act categorizes digital assets into two distinct buckets: 'general' and 'asset-linked' types. Asset-linked tokens, which include stablecoins and other instruments pegged to real-world value, face stricter requirements. Stablecoin issuers will need to meet licensing standards, maintain adequate reserves, and satisfy redemption obligations under the watchful eye of the Financial Services Commission.

The minimum capital requirement for certain digital asset issuers is set at KRW 500 million, roughly $360,000. South Korea plans to amend its Capital Markets Act to allow spot digital asset ETFs, with Bitcoin products leading the charge. The government also aims to pilot tokenized government bonds in 2027, linking the effort to its broader Central Bank Digital Currency initiatives and exploring blockchain interoperability.

The regulatory package includes a cross-border stablecoin payment framework. The ruling Democratic Party proposed the Digital Asset Basic Act, which was first introduced in June 2025 and further details were confirmed by April 2026. While the target of passing the act in the second half of 2026 is ambitious, the KRW 500 million capital requirement could be adjusted upward during legislative negotiations.