South Korean Ruling Party Proposes Regulatory Framework to Institutionalize Stablecoins and Real World Assets

The Democratic Party of Korea has proposed a new legal framework to institutionalize tokenized assets and stablecoins under the Foreign Exchange Transactions Act.

By: AXL Media

Published: Apr 9, 2026, 5:51 AM EDT

Source: Information for this report was sourced from The Block

Integrating Digital Assets into Existing Financial Laws

The Democratic Party of Korea has moved forward with a comprehensive plan to bring tokenized real world assets and stablecoins under the umbrella of established financial regulations. According to reports from the Seoul Economic Daily, this initiative is a central component of the Digital Asset Basic Act, which aims to provide a structured legal environment for the burgeoning digital finance sector. By utilizing existing frameworks, the ruling party intends to streamline the institutionalization of blockchain based assets without creating redundant regulatory bodies.

Mandatory Managed Trusts for Real World Assets

A primary provision of the bill focuses on the security and transparency of tokenized real world assets. According to the proposal, issuers of these digital tokens would be required to deposit all linked underlying assets into a managed trust, as currently stipulated in the Capital Markets Act. This requirement is designed to protect investors by ensuring that digital tokens are fully backed by tangible assets held in regulated financial environments. Further specifics regarding the management of these trusts are expected to be established through future presidential decrees.

Stablecoins Classified as a Means of Payment

The proposed legislation seeks to redefine the legal status of stablecoins, classifying them as a "means of payment" under the Foreign Exchange Transactions Act. This classification would grant local foreign exchange authorities the power to supervise stablecoin providers without requiring a separate registration process for the companies. According to the ruling party, this approach aims to simplify the entry of stablecoins into the mainstream economy while maintaining strict oversight of large scale cross border transactions.