South Korea’s government has announced plans to introduce the Digital Asset Framework Act in the second half of 2026 as part of new strategies to regulate the expanding digital asset industry. Authorities also detailed measures targeting stablecoin policies, spot Bitcoin exchange-traded funds (ETFs), and an enhanced blockchain-based financial infrastructure.
New legislative agenda for digital assets
Officials intend to prepare comprehensive rules for cross-border stablecoin transactions and propose amendments to the Financial Investment Services and Capital Markets Act. These changes would allow regulated spot ETFs tied to major digital assets, including Bitcoin, making South Korea one of the few Asian markets to formally review the launch of Bitcoin ETFs.
The proposed law marks the second phase of South Korea’s efforts to regulate the sector, following the Virtual Asset User Protection Act which took effect in 2024. While that initial legislation targeted investor protection, the upcoming framework aims to broaden oversight to digital asset businesses and stablecoin issuers.
Officials stated that the legislation, initially scheduled for completion in the first quarter of 2026, has been postponed due to recent political events such as local elections and parliamentary scheduling. Despite these delays, regulators signaled a renewed commitment to updating the country’s crypto regulatory structure.
CBDC and tokenized government bonds
Looking ahead, South Korea also plans to launch a pilot project for tokenized government bonds in 2027. These bonds will be linked to the Bank of Korea’s institutional central bank digital currency (CBDC). Authorities are reviewing how CBDC infrastructure could interact with other blockchain networks and evaluating new approaches to blockchain integration in financial markets.
Mini dictionary: Central bank digital currency (CBDC), a digital form of national currency issued and regulated directly by a country’s central bank, offering a state-backed alternative to private cryptocurrencies.
International context and regulatory gaps
Compared to global peers, South Korea has taken a slower approach to regulating digital assets. The European Union has already put its Markets in Crypto-Assets Regulation (MiCA) into force, providing legal clarity for crypto operators. In the United States, lawmakers have advanced stablecoin legislation through the GENIUS Act and are debating market-wide regulations as part of the CLARITY Act.
Several policy issues in South Korea remain unresolved. Authorities are still considering whether to limit stablecoin issuance exclusively to bank-led consortia and whether to cap ownership stakes in digital asset exchanges, reflecting ongoing debates about market structure and investor safety.
| Jurisdiction | Main Crypto Legislation | Status |
|---|---|---|
| South Korea | Digital Asset Framework Act | Proposal, scheduled for late 2026 |
| European Union | MiCA Regulation | In force |
| United States | GENIUS, CLARITY Act | Debate and partial progress |
Officials have not specified whether the introduction of the Digital Asset Framework Act will accelerate South Korea’s broader legislative process. The government’s latest economic policy outline, however, signals an intent to realize these regulatory goals while ongoing negotiations seek to address political and industry concerns.
Regulators indicated that moving forward with the Digital Asset Framework Act will depend on resolving political disagreements and setting up clear requirements for both stablecoin issuers and digital asset exchanges, potentially reshaping South Korea’s crypto landscape.
