South Korea to Launch Major Crypto Regulatory Framework by 2026

South Korea is accelerating its push to formalize the cryptocurrency market through the upcoming "Digital Assets Second Stage Act." Announced as a cornerstone of the government’s 2026 Economic Growth Strategy, this legislative phase focuses on bringing stablecoins and spot ETFs into the regulated financial mainstream.

Key Pillars of the New Legislation

The Financial Services Commission (FSC) is spearheading the initiative to ensure South Korea remains competitive with global financial shifts. The act focuses on three primary areas:

• Stablecoin Management: Issuers will face strict 100% reserve mandates and mandatory licensing. The law will explicitly define legal redemption rights to protect holders.
• Spot ETF Integration: In a move to align with international markets, the government will permit digital asset spot ETFs, providing a regulated path for retail and institutional investors to gain crypto exposure.
• Cross-Border Oversight: New protocols for international cryptocurrency transactions are being developed to enhance security and maintain regulatory compliance across borders.

Market Outlook

The local industry has met the announcement with cautious optimism. By establishing clear "rules of the road," the FSC aims to eliminate market ambiguity, which officials believe is essential for long-term growth and investor confidence. FSC official Yoon Sang-ho emphasized that adopting spot ETFs is a vital step in synchronizing South Korean finance with evolving global standards.

January 2026, Cryptoniteuae