The Democratic Party of South Korea has introduced a proposed 'Digital Asset Basic Act' that aims to establish a robust regulatory framework for digital assets. This includes provisions for the issuance, trading, custody, and supervision of digital assets, with a focus on protecting consumers and promoting innovation. The proposal defines value-linked digital assets, such as stablecoins, as requiring authorization from issuers, as well as reserve and redemption obligations.
The new legislation seeks to address the current regulatory vacuum and provide a clear framework for the digital asset sector, including licensing and registration requirements for businesses, rules on disclosure and market conduct, and the establishment of a digital asset committee to oversee policy and coordination. This move comes as part of a broader effort to develop a comprehensive framework for the regulation of digital assets in South Korea, and to position the country as a leader in the global digital financial landscape.