tl;dr
South Korea’s ruling Democratic Party is speeding up new regulations for Bitcoin and cryptocurrencies following the U.S. GENIUS Act. The legislation aims to define crypto platform responsibilities, prevent fraud, and enhance market transparency, covering taxation, investor protection, and stablecoin...
South Korea’s ruling Democratic Party is accelerating efforts to introduce new regulations for Bitcoin and cryptocurrencies. This move comes in the wake of the United States passing the GENIUS Act, which established a clear framework for digital asset oversight. South Korean lawmakers aim to keep pace with major global economies by prioritizing updates in laws covering Bitcoin, stablecoins, and crypto exchanges. A senior party official emphasized that “delays aren’t an option,” underlining the urgency of the legislative push.
The legislation will focus on defining responsibilities for crypto platforms and preventing fraud, aiming to close legal gaps and enhance market transparency. Concurrently, Korea Investment and Securities is developing a stablecoin backed by the Korean won to facilitate smoother domestic payments and transfers. Although no release date has been announced, the stablecoin will be fully collateralized by won reserves and designed for everyday financial transactions.
New regulations will cover taxation, investor protection, and stablecoin governance, with oversight expected from the Financial Services Commission. The laws will likely specify requirements for how platforms handle customer assets and reporting, and may categorize digital assets into types such as payment tokens or asset-backed tokens. South Korea’s regulatory blueprint draws inspiration from international standards like the European Union’s MiCA law and the U.S. GENIUS Act, incorporating core global principles without direct replication.
Crypto adoption in South Korea is on the rise, with over 25% of individuals aged 20 to 50 owning digital assets and 70% of those intending to increase their investments. This broader usage across demographics has created momentum for stronger legal safeguards, as cryptocurrencies increasingly play roles in savings and long-term financial planning. South Korean officials highlight the importance of transparent operations and protections for both retail investors and institutions in the forthcoming regulatory framework.