South Korea to Push Digital Asset Law This Year, Speed Rules for Won Stablecoins and Bitcoin ETFs

South Korea will move to overhaul its legal and regulatory framework to formalize won-denominated stablecoins and pave the way for spot Bitcoin exchange-traded funds.

The Ministry of Economy and Finance said on July 14 in its 2026 economic growth strategy that the government will draft a Basic Digital Asset Act this year as the second phase of legislation and pursue institutional changes to foster the digital-asset industry.

Through the proposed law, the government plans to subdivide the digital-asset industry and revamp the regulatory framework for business activities. It also aims to establish a legal basis for won stablecoins.

At the same time, officials are reviewing ways to bring cross-border stablecoin transactions into the formal regulatory system. The government will also seek revisions to the Capital Markets Act to allow spot ETFs for digital assets such as Bitcoin, while pursuing related amendments to laws including the Foreign Exchange Transactions Act.

It also plans to expand pilot projects aimed at strengthening the competitiveness of the blockchain industry. In finance, the government will launch a pilot next year for tokenized government bonds linked to the Bank of Korea's wholesale central bank digital currency program. It will also examine ways to secure interoperability between CBDC infrastructure and other blockchain networks.

The government also plans to work with international organizations to issue carbon credits that meet Global Voluntary Carbon Market standards and build a blockchain-based system to manage and trade them. In addition, it aims to enact a Basic Law on State Assets to reflect new forms of assets, including virtual assets, in the national asset management system.

The government had originally planned to legislate the Basic Digital Asset Act in the first quarter of this year. But consultations between the government and the ruling party, along with discussions on the bill, were delayed by overlapping events including the US-Iran military conflict, local elections and the schedule for forming the National Assembly's Political Affairs Committee.

There are currently 10 bills pending in the National Assembly related to digital assets and stablecoins, proposed separately by lawmakers from the Democratic Party and the People Power Party. Based on those proposals, the government is expected to step up its legislative push this year.