- South Korea plans tighter oversight on token listings through a market surveillance committee.
- New bill permits stablecoin issuance for firms with 500M won equity and reserve backing.
- Stablecoin trading hit 57T won in Q1 2025, reflecting rising adoption in local markets.
South Korea’s government is moving to tighten its regulatory grip on the nation’s booming cryptocurrency market, proposing a new law that would bring crypto exchange token listings under direct government supervision. The draft legislation, known as the Digital Asset Basic Act, was submitted by the ruling Democratic Party of Korea (DPK) on June 10, also introduces a regulation for stablecoin issuance by local companies.
These changes symbolize efforts to increase transparency and control within one of the world’s most active digital-asset markets, which sees daily trading volumes often rivalling those of the country’s traditional stock exchanges.
Related: South Korea Presidential Race: Lee Jae-myung Ahead as Crypto Regulation Becomes Key Issue
New Bill to Supervise Exchange Token Listings
Under the proposed Digital Asset Basic Act, decisions related to the listing and delisting of tokens will be reviewed by a market surveillance committee. Currently, South Korean exchanges rely on their own independent review systems. If passed, the bill would limit these powers and place oversight in the hands of an evaluation committee that would monitor exchanges’ internal processes.
According to the office of DPK lawmaker Min Byoung-dug, the original proposal sought to transfer full authority to regulators. However, after discussions with industry stakeholders, the final version retained exchange-level autonomy with added regulatory supervision.
Framework Establishes Rules for Domestic Stablecoin Issuers
The new legislation also includes provisions to monitor unfair trading practices more closely, reflecting growing concerns about market manipulation and investor protection. This oversight will be led by the same market surveillance committee tasked with reviewing listing practices.
The bill includes a separate section that outlines regulatory requirements for stablecoin issuance. South Korean companies will be permitted to issue asset-linked digital currencies, including stablecoins, if they hold at least 500 million won (approximately $367,876) in equity capital. Issuers must also maintain reserves to guarantee redemptions.
Related: South Korea Issues New Crypto-Friendly Guidelines: Analysts Suspect Political Motivation
All stablecoin-related products must be approved by the Financial Services Commission, according to the bill text released by the DPK. The proposal aligns with President Lee Jae-myung’s campaign promise to allow domestic firms to participate in stablecoin markets.
President Lee, elected last week, has prioritized digital asset reforms and expressed continued support for stablecoin development.
Stablecoin transactions are already increasing in South Korea. According to Yonhap News, citing data from the Bank of Korea, the volume of stablecoin trading involving USDT, USDC, and USDS reached 57 trillion won across five major exchanges in the first quarter of 2025.
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