South Korea Plans to Bring Stablecoins and RWAs Under Financial Regulation
South Korea’s Virtual Asset User Protection Act, effective since July 19, 2024, remains focused on asset custody and prohibiting market manipulation. The ruling Democratic Party is therefore advancing a second-stage Digital Asset Basic Act that would bring payment-focused stablecoins and tokenized real-world assets, or RWAs, representing assets such as U.S. Treasuries and loans under existing financial laws, closing regulatory gaps.
The Seoul Economic Daily reported on April 8, 2026, that the Democratic Party’s digital-asset task force had consolidated the draft on Feb. 23. Article 124 would classify stablecoins used in foreign-exchange transactions as payment instruments under the Foreign Exchange Transactions Act and prohibit them from paying interest. Article 112 would require RWA issuers to place underlying assets in trust under the Capital Markets Act, with details to be prescribed separately by presidential decree.
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The history behind this eventSouth Korea Plans Stablecoin Law, Crypto ETFs and Tokenized Government Bonds
South Korea has long maintained a strict approach to cryptocurrency regulation. But as the global digital asset market expands rapidly, the government is changing course and seeking to integrate blockchain technology into the traditional financial system. The policy shift is not only central to legitimizing South Korea’s digital asset market but could also influence cryptocurrency regulation across the Asia-Pacific region. It marks a key step in the country’s efforts to promote financial innovation and strengthen its international competitiveness.
South Korea’s Ministry of Finance and Economy formally designated blockchain and digital assets as core priorities in its economic strategy for the second half of 2026, released in July. The government plans to introduce dedicated stablecoin legislation and amend the Capital Markets Act to permit spot cryptocurrency ETFs. It also expects to launch a tokenized government bond pilot program in 2027, laying out a concrete timetable for accelerating a nationwide fintech transformation.
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