South Korean Government Plans to Introduce Stablecoin Regulation Bill and Digital Asset Spot ETF

According to reports, the South Korean government plans to enact the 'Digital Asset (Virtual Asset) Phase II Act' this year, which includes a stablecoin regulatory system, and will simultaneously introduce a cross-border stablecoin trading regulation scheme linked to the bill. In addition, a digital asset spot exchange-traded fund (ETF) is also set to be introduced this year. The government released the '2026 Economic Growth Strategy' on the 5th, overseen by the Financial Services Commission. The Commission will advance legislation for digital assets in the second phase. Regarding stablecoins, it is expected to include an issuance licensing system (capital requirements, etc.), reserve asset management (maintaining issuance above 100%), redemption rights, and more. Furthermore, a cross-border stablecoin transfer and trading regulation scheme linked to the bill will be established. The overseeing departments are the Financial Services Commission and the Ministry of Economy and Finance. Considering the active trading of Bitcoin spot ETFs in countries like the US and Hong Kong, the plan also includes allowing digital asset spot ETFs this year. Previously in South Korea, due to digital assets like Bitcoin not being recognized as underlying assets for ETFs, spot ETF trading was not possible. In addition to stablecoins, the government also plans to utilize a quarter of the national treasury funds in the form of digital currency, known as 'deposit tokens,' by 2030. The government stated that after reviewing the results of pilot projects, they will revise the 'Bank of Korea Act,' 'National Treasury Fund Management Act,' and establish legal grounds for blockchain-based payment settlements within the year. Furthermore, they plan to promote electronic wallets for payment settlements, including business advancement fees.

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