The ruling party in South Korea plans to incorporate tokenized RWA and stablecoins into the existing financial regulatory framework.

ME News message, April 8 (UTC+8), ME News message, April 8 (UTC+8), South Korea’s Democratic Party plans to incorporate tokenized real-world assets (RWA) and stablecoins into the existing legal framework, and the relevant provisions have been included in the draft of the “Digital Asset Framework Act.” The proposal requires that issuers of tokenized RWA place the linked assets into a trust account under the “Capital Markets Act”; stablecoins are classified as a “means of payment” under the “Foreign Exchange Transactions Act,” and are regulated by the foreign exchange authorities, without the need for separate registration. Small stablecoin transactions are exempt from foreign exchange reporting, while large transactions maintain regulatory requirements. In addition, the proposal prohibits providing any yield on idle stablecoin balances and requires the Financial Services Commission to set technical standards for stablecoin interoperability. The “Digital Asset Framework Act” is South Korea’s second set of digital-asset regulatory rules; it has been delayed by legislation multiple times, and the originally planned timeline for a 2025 launch has been pushed back. (Source: ChainCatcher)