South Korea’s new cryptocurrency bill outlines licensing requirements for stablecoin issuers with substantial capital reserves. This move aims to bolster a domestically-based stablecoin market and aligns with President Lee Jae-myung’s vision for digital finance. The Digital Asset Basic Act proposes broader regulations for the crypto industry, encompassing legal definitions, market oversight, and penalties for misconduct. The bill, proposed by Representative Min Byeong-deok on Tuesday, marks a significant step toward establishing a comprehensive framework for the country’s digital asset ecosystem. 500 million Korean won in owner’s capital will be required for stablecoin issuance licenses. This measure aims to ensure stability and prevent capital flight, promoting a Korean Won-denominated stablecoin system as outlined by President Lee Jae-myung. The bill builds on existing regulations like the Virtual Asset Investor Protection Act which came into force in July 2024. It moves beyond simply protecting investors by introducing a comprehensive framework for digital asset classification, market conduct and legal obligations of crypto service providers. This is echoed globally with similar licensing initiatives in the US, EU, Japan, and Hong Kong, indicating international consensus on structured regulation of stablecoin markets.