South Korea’s ruling Democratic Party plans to fast-track new Bitcoin and crypto regulations. The decision follows the United States’ adoption of the GENIUS Act, which set a clear framework for digital asset oversight. South Korean lawmakers say they want to stay aligned with major economies.
On July 22, Bitcoin Archive reported that the ruling party will prioritize legal updates covering Bitcoin, stablecoins, and crypto exchanges. A senior party member said,
“Delays aren’t an option.”
The push includes setting responsibilities for platforms and preventing fraud.
The legislative push will focus on setting clear responsibilities for crypto platforms and preventing fraud, with the goal of addressing gaps in the legal system and improving market transparency.
South Korea Stablecoin Plans Focus on Korean Won
As the government moves toward clearer rules, Korea Investment and Securities is now developing a stablecoin backed by the Korean won. The company has not shared a release timeline but stated that the token will aim to improve domestic payments and transfers.
Related: South Korea Greenlights Expanded Crypto Access for Professional Investors
The won-backed stablecoin will support day-to-day use, including quick payments and financial settlements. Korea Investment and Securities stated the digital currency will be fully collateralized by won reserves.
What the New Regulations will Cover
The proposed Bitcoin laws will include specific rules for taxation and investor protection. Lawmakers are working on a framework to regulate stablecoins and exchanges. The Financial Services Commission is expected to oversee the new legal structure.
The rules will set requirements for how platforms manage customer assets and conduct reporting. They may also define categories for digital assets, such as payment tokens or asset-backed tokens.
South Korea’s approach is influenced by international models, including the European Union’s MiCA law and the GENIUS Act.
Crypto Ownership Rises Across South Korea
More than 25% of South Koreans aged 20 to 50 own digital assets. Among them, 70% plan to increase their investments. This rising usage is pushing lawmakers to establish stronger regulations.
Officials noted that crypto now plays a role in savings and long-term planning. Earlier limited to tech-savvy traders, usage has widened across income levels and age groups.
This shift has added urgency to the push for updated legal protections in the digital asset space.
The GENIUS Act sets legal expectations for digital asset companies in the United States. It covers reporting duties, reserve disclosures, and user safeguards. South Korea’s lawmakers referenced the act while outlining their own legislation.
Officials confirmed they will not copy U.S. law but will adopt core standards from global regulations. These include transparency in operations and protections for both retail and institutional users.
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