South Korea proposes cryptocurrency law with bank-style rules for stablecoins

What Happened

South Korea's ruling Democratic Party proposed a Digital Asset Basic Act establishing legal frameworks for digital assets including issuance, trading, custody and supervision. The proposal defines value-linked digital assets requiring issuer authorization, refund reserves and redemption obligations. It mandates licensing, registration and reporting for digital asset businesses. The legislation addresses previous regulatory disagreements over won-pegged stablecoin issuance authority between the Bank of Korea and Financial Services Commission.

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