South Korea’s New Crypto Bill Sets $3.5M Minimum for Stablecoin Issuers – Can It Pass?

Core Viewpoint - South Korea is advancing legislation to regulate stablecoin issuers, requiring a minimum capital of 5 billion won ($3.5 million) to enhance oversight of the virtual asset market [1][2][3] Group 1: Legislative Developments - The Democratic Party's Digital Asset Task Force is actively discussing the provisions of the new bill, aiming to formalize regulations for the crypto market [1][2] - The proposed Digital Asset Basic Act aligns stablecoin regulations with existing electronic money standards, reflecting concerns over market stability [2][3] Group 2: Capital Requirements - Companies intending to issue stablecoins must meet the 5 billion won capital threshold, similar to requirements for electronic money firms [3] - This measure aims to prevent undercapitalized firms from issuing tokens, thereby reducing the risk of market disruptions [3][4] Group 3: Governance and Risk Management - The bill proposes the establishment of a Virtual Asset Committee to oversee market risks, led by the chair of the Financial Services Commission [4][5] - The committee will include key officials from the Bank of Korea and the Ministry of Economy and Finance, focusing on rapid responses to market crises [5] Group 4: Ongoing Discussions - Despite progress, unresolved policy disagreements remain, particularly regarding the Bank of Korea's authority and limits on major shareholder holdings [6]