Korea's Stablecoin Law Shifts Focus from Issuers to Risk Standards
Seoul Economic Daily reports that South Korea’s digital asset bill is moving away from picking specific winners in favor of sector-neutral regulatory criteria.
Key points
- South Korea’s Digital Asset Basic Act now requires sector-neutral licensing for stablecoin issuers.
- Issuers must hold one-to-one reserves and meet strict capital and anti-money laundering standards.
- The strategy aims to compete with global platforms by allowing both banks and startups to operate.
South Korea is abandoning the plan to pre-select specific banks for stablecoin issuance rights. The Digital Asset Basic Act now prioritizes uniform risk standards over industry exclusivity.
This shift aims to prevent market fragmentation before the sector matures. According to Seoul Economic Daily, the government must set rules rather than choose competitors.
Regulatory focus shifts to issuer risk profiles
The law requires all issuers to hold sufficient equity capital and technical capacity. It mandates one-to-one reserve assets held in segregated custody for safety.
Issuers must also provide regular disclosures and undergo external verification. Anti-money laundering controls and recovery plans are now mandatory baseline requirements.
These rules apply equally to banks and non-bank technology firms. The principle is that same function and risk demand same regulation.
Global competition drives domestic regulatory neutrality
The United States GENIUS Act includes non-bank issuers in its regulatory perimeter. Japan’s first stablecoin was created by a startup, not a traditional bank.
South Korea risks losing ground if it restricts entry to incumbents. Global platforms are already hardening technical standards and distribution networks.
Market competition determines future stablecoin winners
Stablecoins can reduce trade settlement costs and support AI agent payments. This utility requires diverse innovation from both banks and startups.
The government should not pick winners but set transparent rules. Firms that meet standards will be tested by user choice.
