South Korea’s ruling Democratic Party is preparing a draft bill that would bring stablecoins and tokenised real-world assets under existing financial laws.
The proposal would classify stablecoins used in cross-border transactions as foreign exchange payment instruments, placing related activities under regulatory oversight without requiring separate registration.
The draft would also require issuers of tokenised RWAs to hold underlying assets in managed trusts under the Capital Markets Act, ensuring custody within established financial frameworks.
The reported measures would tighten oversight of cross-border crypto flows while integrating digital assets into traditional financial regulation systems.
The proposal also bans interest payments on stablecoins and introduces exemptions for certain payments for goods and services within defined reporting thresholds.
Regulators would also be tasked with setting interoperability standards to ensure digital assets can function across different blockchain networks.
The approach follows earlier warnings from Lee Chang-yong, who said won-denominated stablecoins could complicate capital flow management and foreign exchange stability.