South Korea is working to officially recognize and regulate real-world assets (RWAs) and stablecoins. These new rules aim to create a safe and controlled environment for their use.
South Korea is developing clear legal rules for digital assets that represent real-world value, like tokenized assets and stablecoins. Lawmakers are working to fit these new technologies into existing financial regulations, moving away from unclear guidelines towards a more structured system. Industry experts are paying close attention, as these rules could significantly impact how institutions start using these assets.
Tokenized Real-World Assets Gain Legal Clarity in South Korea’s Draft Bill
South Korea’s ruling Democratic Party is paving the way to legally recognize digital assets like real-world asset (RWA) tokens and stablecoins. A new draft law, the Digital Asset Basic Act, outlines that these tokens will be officially accepted if they meet specific security and regulatory standards.
The new plan requires companies that issue digital tokens connected to real-world assets to hold those assets in a managed trust, following existing financial regulations. This is designed to ensure these tokens are backed by real value, protecting investors from false claims or inadequate reserves. Details on how this will work in practice are expected to be released soon through presidential directives.
As a researcher following the development of Real World Assets (RWAs) on the blockchain, I’m seeing a significant change in how these assets are handled. Previously, RWAs existed in a bit of a gray area regarding regulation. South Korea already allowed tokenized securities, and now they’re building on that foundation. This new framework could mean things like U.S. Treasury bonds and asset-backed loans can be issued as tokens with much clearer and more defined rules, which is a big step forward for the industry.
Legislators are suggesting that certain stable digital currencies be legally recognized as a form of payment for international transactions. Companies that work with these currencies would be overseen like traditional foreign exchange businesses, but wouldn’t need to register separately.
A rule allows small, everyday payments for things you buy to go through without a lot of extra checks. Bigger transactions, though, will still be monitored to keep track of money flow, showing a compromise between making things easy and keeping things secure.
Stablecoin Yield Ban and Interoperability Rules Take Shape in New Draft Law
South Korea is placing restrictions on stablecoins, specifically prohibiting issuers from offering any kind of return to holders – whether it’s called interest, a discount, or a share of reserves. This move puts South Korea in line with discussions happening worldwide, especially in the US, about whether stablecoins that earn returns should be regulated like other financial products.
Regulators are working to solve technical issues caused by the separation of different blockchain networks. The proposed rules require the Financial Services Commission to create standards that allow these networks to work together. This is to ensure enough trading activity remains within each platform, particularly if stablecoins using the Korean won are created on various blockchains.
Changes are also happening in how companies share information. Instead of reports being filed with many different exchanges, there’s a plan to create one central reporting system run by an industry group. This would give investors clearer, more consistent data.
The current version of the document doesn’t include rules about how much ownership one entity can have in an exchange, or what banks stablecoin companies need to own. These topics are still being discussed, so the document will likely be updated again.
South Korea is taking a deliberate approach to integrate cryptocurrencies into its existing financial framework. By connecting the creation of new tokens to established regulations and prioritizing their use for payments, the government is encouraging greater involvement from traditional financial institutions.
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2026-04-08 18:41