South Korea’s Digital Assets Basic Law for Stablecoins: 100% Reserve Rules and Ongoing Debates on Issuer Qualifications

South Korea is progressing with the Digital Assets Basic Law in its second phase, aimed at strengthening investor protection and risk controls across crypto markets. The draft envisages a strict liability regime for digital asset service providers and a bankruptcy risk isolation mechanism for stablecoin issuers. With key questions on issuer qualifications, approval mechanisms, and minimum capital, negotiators expect the formal proposal to slip to next year. The Financial Services Commission reportedly contemplates reserve buffers in low‑risk assets—keeping at least 100% of issued balances in deposits or trusts at banks or custodians—to curb contagion. A disclosure‑centric stance could also open domestic sales to address the prior overseas issuance/domestic circulation dynamic. Endorsed positions remain unresolved among the FSC, Bank of Korea, and related bodies, per Yonhap News.