The relevant provisions are included in the draft “Basic Act on Digital Assets.”
South Korea’s ruling Democratic Party has decided to institutionalize tokenized real-world assets (RWA) and stablecoins by integrating them into existing financial regulatory frameworks.
According to a Seoul Economic Daily report, tokenized RWA issuers must place the linked assets in a managed trust under the Capital Markets Act.
Details will be specified by presidential decree.
Related: Coinbase Secures Australian License, Plans Stock and Derivatives Trading
Stablecoin Regulation
The proposal classifies stablecoins as a “means of payment” under the Foreign Exchange Transactions Act. This allows regulators to oversee stablecoin issuers through existing currency control authorities without requiring separate registration.
Small stablecoin transactions for paying for goods and services would be exempt from foreign exchange reporting requirements.
Additionally, the draft prohibits paying yield on idle stablecoin balances. The Financial Services Commission (FSC) must also develop technical standards for stablecoin interoperability and a unified digital asset disclosure system.
Related: Bybit Flags $1B DOT Fake Deposit Attack
Tighter Exchange Oversight
Earlier, South Korea’s financial regulator mandated that all crypto exchanges conduct automated balance reconciliation every five minutes.
The requirement followed a major error on the Bithumb exchange. Users mistakenly received approximately $42 billion in Bitcoin (BTC) instead of a small won amount.
Inspections revealed most exchanges conducted reconciliation only once daily. Many lacked automatic trading halts for discrepancies and did not use multi-level approval for manual transactions. High-risk transactions now require a separate account with mandatory third-party verification. External audits have shifted to a monthly schedule.
Regulatory Context
The Basic Act on Digital Assets will be the second major regulatory act in South Korea’s digital asset sector. Its passage has been delayed multiple times. An updated version is now expected to be adopted.
Related: How to Build a Profitable Crypto Portfolio—Risk-Adjusted Strategies in 2026
