South Korean lawmaker Min Byung-deok, a member of the Democratic Party, has signaled an urgent timeline for the country’s comprehensive cryptocurrency legislation. Speaking at a discussion session on November 13, 2026, Min emphasized the necessity of finalizing the "Digital Assets Basic Act" by January 9, 2025. This proposed deadline is strategically set to precede the anticipated implementation of the United States stablecoin regulatory system, which is expected to take effect on January 18. The move reflects South Korea's ambition to maintain regulatory parity with global financial leaders in the evolving blockchain sector.
Proposals for Stablecoin Issuance and Reserves
A central point of Min's proposal involves the liberalization of won-pegged stablecoin issuance. The lawmaker voiced opposition to restrictive policies that would limit issuance rights solely to consortia with more than 50% bank shareholding. Instead, Min advocated for a more inclusive framework where any entity can participate, provided they adhere to stringent financial security protocols.
- Requirements for 100% reserve backing for all issued digital assets.
- Guarantees for instant redemption of tokens for fiat currency.
- Removal of institutional barriers favoring traditional banking conglomerates.
By focusing on reserve transparency rather than corporate structure, the proposal aims to foster competition while ensuring investor protection within the South Korean won (KRW) ecosystem.
Taxation Reforms and Institutional Oversight
Beyond issuance, the legislative roadmap addresses the fiscal and administrative management of the crypto industry. Min Byung-deok proposed a significant shift in cryptocurrency taxation, suggesting a delay in implementation until 2029. This plan includes provisions for a three-year loss carry-forward mechanism, allowing investors to offset current gains with past losses. To streamline governance, the lawmaker recommended the establishment of a Presidential Committee for Digital Assets, which would operate directly under the executive branch to coordinate policy across various ministries.
"The Digital Assets Basic Act should be completed by January 9th next year to catch up with the implementation of the US stablecoin system on January 18th", Min stated during the session, highlighting the global competitive pressure facing the South Korean blockchain market.
The proposed Digital Assets Basic Act represents a critical step in South Korea's effort to transition from reactive regulation to a structured legal framework. By addressing stablecoin liquidity, institutional oversight, and tax relief, the legislation seeks to balance market growth with systemic stability. As the January 2025 deadline approaches, the focus shifts to whether these proposals will gain sufficient legislative momentum to meet the international regulatory schedule.
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