South Korea Introduces Comprehensive Digital Asset Regulations

South Korea plans to enact the “Digital Assets Second Stage Act,” including stablecoin and ETF regulations, this year, per government announcements on January 9.

This legislation aims to align with global trends, impacting digital asset markets significantly and influencing cross-border stablecoin transactions.

South Korea Unveils Digital Asset Law for 2026 Strategy

The South Korean government announced advancements in crypto regulation with the “Digital Assets Second Stage Act,” which covers stablecoin regulation and digital asset spot ETFs. The initiative, part of the “2026 Economic Growth Strategy,” underscores the country’s commitment to integrating digital assets in its financial landscape. The Financial Services Commission oversees this legislation. The effort aims to streamline stablecoin issuance and management, establishing a legal framework for redemption rights and reserve management. Digital asset spot ETFs are set to debut, aligning South Korea with global trends.

Immediate changes include licensing requirements and 100% reserve mandates for stablecoin issuers. Cross-border transaction rules will also be formulated, ensuring compliance and fostering secure cryptocurrency operations. Spot ETF trading is set to boost market access, offering investors exposure to digital assets within a regulated framework.

Industry responses have been cautiously optimistic. While no major global crypto figures have commented, the overall sentiment appears supportive. The announced regulatory certainty could enhance investor confidence and stimulate market growth.

25% of South Korea’s Budget in Digital Currency by 2030

Did you know? Following the introduction of the “Digital Assets Second Stage Act,” South Korea aims to normalize blockchain-based payments, targeting 25% of its national budget execution in digital currency by 2030, echoing global trends in stablecoin and digital asset usage.

Bitcoin (BTC) currently trades at $90,973.85 with a market cap of $1.82 trillion and 24-hour trading volume of $41.20 billion. BTC shows a 0.56% rise over 24 hours but a 19.07% decline over 90 days per CoinMarketCap data.

The Coincu research team emphasizes that South Korea’s policy could drive innovations in financial technology and bolster international cooperation. By adopting clearer frameworks, investment in digital assets might increase, potentially affecting global markets.