South Korea's ruling party said it will continue to push ahead with plans to incorporate Tokenize real assets (RWA) and stablecoins into the existing financial regulatory framework, rather than creating an entirely new legal system.
According to the Seoul Economic Daily , the Democratic Party of Korea has included provisions related to digital assets linked to RWAs in the upcoming draft of the “Digital Asset Basic Act.”
With Tokenize RWAs, the draft regulations are said to require the issuer to deposit the corresponding physical assets into a trust fund managed by a trustee, as stipulated by Capital Markets Act. Further details will be specified by presidential decree.
Regarding stablecoins, the proposal is to classify them as "means of payment" under the Law on Foreign Exchange Transactions. This means that domestic foreign exchange regulators will supervise stablecoin businesses without requiring a separate registration procedure.
Notably, the draft also exempts small-scale stablecoin transactions used for purchasing goods/services from foreign exchange reporting requirements. This can be understood as a way to encourage the use of stablecoins in daily life, while still maintaining tight control over large transactions.
Amidst the debate in the US, South Korea's proposal is also said to prohibit paying interest on "idle balances" of stablecoins.
Additionally, the draft requires the Financial Services Commission (FSC) to develop technical standards to ensure better compatibility and interoperability between stablecoins, while also aiming for a unified information disclosure system for digital assets.
The "Digital Asset Basic Act" is South Korea's second-phase regulatory framework for the digital asset sector, but it has been repeatedly delayed, pushing back the original 2025 deadline.
The article "South Korea to include RWA and stablecoins in existing financial regulatory framework" first appeared on CoinMoi .
