Key Takeaways:

• South Korea plans to regulate stablecoins and asset-backed tokens using existing financial laws.
• Stablecoins used for international payments may be treated like foreign currency transfers and closely monitored.
• Tokenized real-world assets will need to be backed by securely managed real assets.

South Korea’s ruling Democratic Party is reportedly preparing legislation that would bring stablecoins and tokenized real-world assets (RWAs) under the country’s existing financial regulatory system, instead of creating entirely new laws for them.

The provisions are part of an integrated draft of the Digital Asset Basic Act, dated 23 February 2026, prepared by the party’s Digital Asset Task Force.

Stablecoins classified as foreign exchange payment instruments

Under Article 124 of the draft bill, stablecoins used in international transactions would be classified as “payment instruments” (tools used for sending or receiving money) under South Korea’s Foreign Exchange Transactions Act. This is the country’s main law governing how money enters and exits its borders.

Businesses handling such stablecoins would automatically fall under the supervision of South Korea’s foreign exchange authorities without needing to go through a separate registration process.

Smaller stablecoin payments for everyday goods and services would be exempt from foreign exchange reporting requirements, while larger cross-border transactions would still be monitored.

The draft also bans stablecoin issuers from paying any form of interest or yield to tokenholders, regardless of how those returns are labeled. This reflects broader global concerns about stablecoins being used as interest-bearing products.

Bank of Korea Governor Lee Chang-yong raised similar concerns on 27 January 2026 at the Asian Financial Forum in Hong Kong. He warned that won-pegged stablecoins could be used to move money in and out of the country without following normal financial rules, especially during times of economic stress.

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RWA tokens must be backed by managed trusts

The draft also introduces rules for RWA tokens. Under Article 112, issuers would be required to deposit the underlying real-world assets into managed trusts governed by South Korea’s Capital Markets Act, the country’s main law for regulating investments like stocks and bonds. This means the real assets backing the tokens must be securely held and managed on behalf of investors.

Further operational details, including how these trusts would function, would be defined through a presidential official order.

The Financial Services Commission, South Korea’s main financial regulator, would be tasked with setting interoperability standards across blockchains, meaning rules that allow stablecoins and digital assets to move smoothly between different blockchain systems.

The FSC is also planning a unified disclosure system for digital assets, replacing the current system where each crypto exchange provides its own separate disclosures.

Related: South Korea Orders Crypto Exchanges to Check User Funds Every 5 Minutes

A broader push for clearer crypto rules

South Korea’s decision to regulate stablecoins and RWA tokens under existing financial laws is a notable policy direction. It brings assets that previously operated without clear legal rules into a structured regulatory framework already used for traditional finance.

For the cryptocurrency sector, this marks a move away from uncertainty toward clearer oversight within established financial boundaries.

The Digital Asset Basic Act — South Korea’s second digital asset regulatory framework — had already missed its 2025 deadline following legislative disagreements. As of writing, no formal version of the draft had been publicly filed with the country’s National Assembly.