First Crypto Industry Law Set to Launch in Korea: Stablecoin Issuance to Require Licensing

The South Korean government is preparing to implement a comprehensive regulatory framework for the domestic virtual asset industry. Min Byung-duk, a member of the Democratic Party of Korea, has announced plans to introduce the Digital Asset (Virtual Asset) Basic Act next month. The bill features a licensing regime for stablecoin issuance and is expected to serve as a legislative cornerstone for the so-called “second phase of regulation,” following the enactment of the Virtual Asset User Protection Act last year.

Under the proposed legislation, stablecoins may only be issued with prior authorization from the Financial Services Commission (FSC), effectively making unauthorized issuance illegal. Other categories of virtual assets would not be subject to the same licensing requirement; however, issuers would still be obligated to file a pre-issuance report with the authorities.

This initiative reflects a policy shift away from exchange-centered oversight toward a more holistic regulatory structure—one that governs the entire lifecycle of virtual assets, including issuance, distribution, listing, and disclosure.

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