South Korea proposes stablecoin law with bank rules

South Korea's ruling Democratic Party has introduced a "Digital Asset Basic Act" to establish a comprehensive legal framework for digital assets. The proposed legislation mandates strict licensing, reserve, capital, and operational standards for entities issuing stablecoins or other value-linked digital assets. This move aims to position South Korea as a leader in digital finance and enhance investor protection by introducing licensing, registration, and reporting requirements for digital asset businesses. The bill also seeks to prevent market manipulation and establish a dedicated committee for policy coordination, addressing gaps in the current regulatory landscape.