The Democratic Party of Korea has decided to pursue allowing real-world asset (RWA) tokens under mandatory trust custody requirements while regulating stablecoins as payment instruments under the Foreign Exchange Transactions Act. The move is seen as a concrete framework for bringing the entire digital asset sector under institutional oversight.
According to an integrated draft of the "Digital Asset Basic Act" obtained by The Seoul Economic Daily on Wednesday from the Democratic Party's Digital Asset Task Force, special provisions for issuing real-world asset-linked digital assets have been included. Under Article 112, anyone seeking to issue real-world asset-linked digital assets must store the underlying assets in a managed trust under the Capital Markets Act. Detailed requirements will be stipulated by presidential decree.
The provision is significant in that it brings the issuance of real-world asset-linked digital assets, which had previously existed in a regulatory gray zone, into the institutional framework. RWA is a broader concept that includes security tokens recently legislated in Korea, referring to various real-world assets such as U.S. Treasury bonds and asset-backed loans issued as blockchain-based tokens.
For stablecoins, foreign exchange regulations will apply. Under Article 124 of the integrated draft, value-stabilized digital assets used in foreign exchange transactions will be classified as payment instruments under the Foreign Exchange Transactions Act. Consequently, businesses handling such assets will fall under foreign exchange authorities' oversight without separate registration. An exception clause exempts foreign exchange reporting requirements for payments within a certain range for goods and services. This appears intended to allow routine payment activities while maintaining regulatory oversight over large-scale fund transfers.
Regarding stablecoin interest payments, which have sparked controversy in the United States, the draft explicitly prohibits such payments in Korea. Issuers are barred from paying interest at their own expense to holders of value-stabilized digital assets, regardless of terminology such as discounts or rewards.
A provision requiring the Financial Services Commission to establish technical standards for ensuring interoperability of won-pegged stablecoins within the digital asset ecosystem, including distributed ledgers, was also included. This reflects concerns that liquidity could become fragmented if won-pegged stablecoins are issued across various blockchains.
The disclosure system will also be overhauled. The draft calls for unifying disclosures, which had been dispersed across individual exchanges, into an integrated disclosure system centered on the Digital Asset Industry Association, while standardizing the information provided to investors.
However, major issues that had drawn significant market interest, such as restrictions on exchange major shareholders' stakes and requirements for stablecoin issuers to hold bank equity, were not included in this integrated draft. The draft is dated February 23, and the task force is reportedly continuing follow-up discussions based on this version.
