South Korea Fast-Tracks Bitcoin Legislation Under New President

Lee Jae-myung, recently elected as South Korea’s President, has prioritized the acceleration of crypto legislation. The ruling Democratic Party proposed the Digital Asset Basic Act, aiming to foster transparency and drive crypto innovation within South Korea.

Leading this initiative is lawmaker Min Byeong-deok, who announced the Digital Asset Basic Act. This act has been described as the cornerstone for global digital economy excellence, focusing on stablecoins and crypto growth.

“The Digital Asset Basic Act is the cornerstone for South Korea to excel in the global digital economy” – Min Byeong-deok, Lawmaker, Democratic Party.

The legislation signals potential shifts in investment behavior, with President Lee suggesting South Korea’s pension fund invest in Bitcoin. This development could pave the way for increased institutional involvement in the crypto market.

The new regulations will require stablecoin issuers to fulfill specific capital conditions, while domestic banks are expected to play a significant role. This is part of efforts to retain national wealth and encourage local crypto projects.

The Bank of Korea has raised concerns about non-bank stablecoin issuers, advocating for the central bank’s regulatory control over won-pegged stablecoins. These discussions highlight differing views on future crypto governance.

Potential consequences include significant financial engagement through national pension and institutional investments. Historical precedents, like the Virtual Asset Investor Protection Act, underscore South Korea’s ongoing strategy to balance regulation with innovation in the crypto sector.