South Korea’s New Crypto Bill Sets $3.5M Minimum For Stablecoin Issuers – Can It Pass?

What Happened

Beyond capital rules, the bill introduces a new governance structure to manage market risks more effectively.

The committee is designed to coordinate rapid responses to hacks, system failures, and major market disruptions.

The task force plans final coordination with the party’s policy committee and relevant government bodies before introducing the bill.

Market Context

South Korea is moving closer to passing a new crypto bill that would require stablecoin issuers to hold a minimum of 5 billion won ($3.5 million) in capital, as lawmakers seek to formalize oversight of the virtual asset market.

Representative Ahn Do-geol, serving as task force secretary, confirmed during a press briefing: “We agreed to set the legal capital requirement for stablecoin issuers at least 5 billion won.”

Stablecoin Capital Threshold Mirrors Electronic Money Standards

The proposal, part of the forthcoming Digital Asset Basic Act, places stablecoins closer to traditional electronic money under Korean law at a time of heightened concern over market stability and capital flows.

The measure is intended to prevent undercapitalized firms from issuing tokens without sufficient backing, reducing the risk of abrupt collapses.

Speaking at the Asian Financial Forum in Hong Kong, Lee warned that stablecoins could enable rapid cross-border capital movement, weakening capital controls.

He said the risks would increase if U.S.-dollar-pegged stablecoins were connected to U.S.-dollar-pegged tokens, allowing funds to exit the country quickly during market stress.

Why It Matters

Officials say stronger balance sheets should help issuers absorb losses and manage operational risks, limiting potential harm to users during periods of stress.

South Korea Central Bank Voices Concerns Over Stablecoin Risks

Details

According to local reports, the Democratic Party’s Digital Asset Task Force, led by Chairman Lee Jeong-moon, convened its second plenary session on January 28 at the National Assembly Members’ Hall to discuss legislative directions based on the bill’s provisions.

Under the draft, any company seeking to issue stablecoins in South Korea must meet the threshold, aligning the rule with existing requirements for electronic money firms.

Lawmakers argue that because stablecoins function like digital cash, issuers should be subject to comparable financial safeguards.

A proposed inter-ministerial body, the Virtual Asset Committee, would be led by the chair of the Financial Services Commission.

Other members would include the Bank of Korea’s deputy governor and a vice minister from the Ministry of Economy and Finance.

Lawmakers are targeting submission ahead of the Lunar New Year holiday, which falls on February 17, 2026.

Despite progress on the bill, key policy disagreements remain unresolved.

Sensitive issues such as the scope of the Bank of Korea’s authority and potential limits on major shareholder holdings are still under discussion.

Bank of Korea Governor Lee Chang-yong has repeatedly raised concerns about stablecoins, particularly those linked to foreign currencies.

Those warnings come as regulators remain split on whether stablecoin issuance should be restricted to bank-led consortia.

At the same time, currency pressures have added to policymakers’ caution, with the won sliding to 1,431.15 per dollar amid tariff threats from U.S. President Donald Trump.

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