By South Korea is fast-tracking cryptocurrency regulations in response to the recently passed GENIUS Act in the United States, signalling a renewed push to tighten oversight of digital assets like Bitcoin and Ethereum.
The country’s ruling party announced plans to speed up crypto-focused legislation, aiming to create a clearer legal framework for virtual assets, exchanges, and stablecoins.
Officials say the move is necessary to stay competitive in the global digital finance space and to improve investor safety.
The GENIUS Act, passed in the US earlier this month, is seen by South Korean policymakers as a turning point in global crypto regulation.
In response, South Korea is advancing its own proposals, including new tax laws, clearer custody rules for crypto exchanges, and support for won-based stablecoins.
This marks one of the country’s most ambitious efforts to date to adapt its financial laws to the rapidly evolving crypto ecosystem.
JUST IN: South Korea’s ruling party to accelerate Bitcoin and crypto legislation following the Genius Act 🇰🇷
Focus areas include crypto taxes, exchange compliance, and stablecoin rules
According to recent announcements from South Korea’s Democratic Party, the government is focusing on three core areas: tightening tax policies for digital asset transactions, clarifying how exchanges manage user funds, and setting up legal structures to prevent crypto-related fraud.
These steps are designed to increase transparency while also building a safe environment for both retail and institutional investors.
Regulators are reportedly working on policies to better define the responsibilities of crypto exchanges, particularly regarding the segregation of user and platform assets.
The revised rules would also introduce licensing conditions and regular audits, aligning with international standards seen in jurisdictions such as Singapore and the US.
The GENIUS Act, passed in the US Congress earlier this month, is being cited as a trigger for South Korea’s shift.
Local lawmakers view it as a sign that other major economies are moving swiftly to regulate the digital asset space.
They now see regulatory delays as a risk to both economic competitiveness and investor confidence.
Korea Investment and Securities develops won-backed stablecoin
Alongside regulatory updates, South Korea is also investing in homegrown blockchain-based payment infrastructure.
Korea Investment and Securities, one of the country’s largest financial services firms, is currently developing a stablecoin backed by the Korean won.
The digital currency is intended to facilitate real-time payments and financial transactions across consumer and business platforms.
It will also offer more stable alternatives to volatile cryptocurrencies like Bitcoin and Ethereum in day-to-day use.
This effort mirrors similar moves in other economies, including Japan’s regulated yen-backed stablecoin initiatives and the European Union’s exploration of a digital euro.
By supporting a won-linked stablecoin, South Korea aims to provide a compliant digital currency that is fully integrated into the national financial system.
Crypto ownership climbs, especially among younger investors
The push to update regulations comes amid a growing wave of public interest in crypto assets across South Korea.
More than 25% of South Koreans aged 20 to 50 now hold some form of cryptocurrency, according to recent data. Among them, nearly 70% are planning to increase their holdings.
Analysts believe this demographic shift is part of a larger global trend, where digital assets are being viewed not just as speculative tools, but as part of long-term investment and retirement strategies.
The increased participation also underlines the urgency for effective legal frameworks that can address fraud prevention, asset protection, and fair taxation.
By fast-tracking its own regulations, South Korea aims to position itself at the forefront of digital finance in the region, particularly as stablecoin projects and decentralised finance (DeFi) applications grow in prominence.
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