Mirae asset bets big as korea’s crypto law stalls again

South Korea's Digital Asset Bill has faced significant delays primarily due to unresolved debates over stablecoin issuance rules and shareholder limits on crypto exchanges, with the ruling Democratic Party’s national convention in August 2026 marking a key deadline for progress. Central regulatory bodies like the Financial Services Commission and Ministry of Economy and Finance are striving to reconcile divergent policy views to establish a unified legal framework that balances investor protection with market competitiveness, yet failure to reach consensus risks pushing the bill's passage into 2026 or beyond.

The government is fast-tracking Phase 2 of its crypto regulatory framework, focusing on stablecoins, crypto ETFs, and lifting a nine-year ban on domestic firms’ market access, reflecting South Korea’s dominant 65% share of global stablecoin volume and its position as the second-largest crypto adopter in APAC. However, this momentum is tempered by the planned introduction of a 22% capital gains tax on crypto profits exceeding $1,700 starting January 2027, a move that has sparked strong opposition and could reshape market dynamics.

A pivotal component of the proposed Digital Asset Basic Act is the imposition of a 20% cap on controlling shareholders’ stakes in cryptocurrency exchanges, with a 34% exception for operators meeting innovation criteria, aiming to dismantle concentrated ownership structures exemplified by Bithumb’s largest shareholder holding over 70%. This shift from a registration to a licensing regime would introduce comprehensive rules for crypto businesses and stablecoins, including restrictions on voting rights for shares exceeding legal limits, drawing on ownership-dispersion standards from the Capital Markets Act to mitigate management-control risks.

Despite the government’s draft of the Digital Asset Basic Act nearing submission, political deliberations and competing legislative priorities have weakened momentum for imposing direct ownership limits, with some ruling party members advocating for looser restrictions that cap only voting rights rather than ownership stakes. This political uncertainty, coupled with recent changes in the National Assembly’s Political Affairs Committee, casts doubt on whether the bill will pass within 2023, prolonging regulatory ambiguity in South Korea’s rapidly evolving digital asset ecosystem.

By early 2026, South Korea's stablecoin landscape is marked by robust innovation from major players such as Kakao Group and Shinhan Card, who are leveraging their unique infrastructures to push the ecosystem forward. Kakao's joint task force involving KakaoBank and Kakao Pay is pioneering a 'super wallet' that integrates stablecoins, crypto, and local currencies on the Kaia public chain, which already supports Tether (USDT) and is undergoing live payment trials. Meanwhile, Shinhan Card has advanced technological frontiers by partnering with Solana and conducting proof-of-concept tests with Visa, Mastercard, and Fireblocks, signaling a concerted effort to enhance transaction efficiency through Layer 2 solutions and smart contract integrations.

Despite these technological strides, regulatory bottlenecks remain a significant hurdle, particularly the Bank of Korea's insistence on a 51% bank-majority consortium rule for issuing won-pegged stablecoins, a stance that fintech firms are actively contesting. This regulatory impasse has delayed the launch of KRW stablecoins, prompting exchanges like Dunamu and Bithumb to pivot strategically: Dunamu collaborates with Naver Financial on the GIWA blockchain to develop a KRW stablecoin, while Bithumb focuses on dollar-pegged stablecoins through partnerships with Circle and WLF. Although a joint KRW stablecoin initiative with Toss is under discussion, progress remains slow, illustrating how regulatory frameworks are shaping market dynamics and innovation pathways.

By mid-2026, traditional financial institutions in South Korea and Hong Kong have moved decisively from peripheral observers to active participants in the digital asset space, exemplified by Mirae Asset Securities (HK) Ltd integrating OSL's Omnibus Pro platform to enhance institutional access in Hong Kong, and South Korean firms like Korea Investment & Securities, Hanwha Investment & Securities, and Samsung affiliates increasing equity stakes in digital asset exchanges. This surge in institutional involvement reflects a strategic embrace of digital asset infrastructure, signaling a broader market integration where legacy finance and crypto ecosystems converge.

The regulatory landscape remains a complex and evolving frontier, with South Korea’s Financial Supervisory Service, Fair Trade Commission, and Financial Intelligence Unit intensifying oversight of financial firms’ digital asset activities, yet still lacking clear criteria to define permissible engagements. In response, industry bodies like the Korea Financial Investment Association urge brokerages to conduct thorough legal reviews and engage regulators proactively before integrating trading platforms with digital asset exchanges, underscoring the cautious navigation required to balance innovation with compliance.

A pivotal policy shift occurred in 2023 when South Korea lifted a nine-year ban on corporate holdings and trading of digital assets, catalyzing a wave of institutional investments and partnerships. Hana Financial’s acquisition of a 6.55% stake in Dunamu, Korea’s largest exchange, coupled with joint development initiatives on won-pegged stablecoins and blockchain remittances, followed by Samsung’s subsequent investment, exemplify how traditional finance is embedding itself within the digital asset ecosystem, moving decisively from observation to direct market participation.

Despite these advances, achieving interoperability remains a critical challenge as multiple coalitions vie to establish won-pegged stablecoins as the standard, including an eight-bank alliance, Kakao’s bank partnerships, the Naver-Dunamu-Hana bloc, and BDACS with KRW1. This fragmentation highlights the competitive yet collaborative nature of South Korea’s digital asset evolution, where partnerships—such as those involving Hana, Samsung, Kakao, and Naver—are becoming the default strategy to scale infrastructure and navigate regulatory complexity in a rapidly maturing market.

Mirae Asset’s strategic expansion into the digital asset ecosystem is anchored by its acquisition and rebranding of Korbit as Digital X, which serves as the central infrastructure bridging traditional finance and blockchain-based digital assets. This move is integral to the 'Mirae Asset 3.0' strategy, aiming to unify custody and trading services through newly trademarked digital wallets like 'M-Wallet' and 'MAPS Wallet,' seamlessly integrating with the global MAPS platform to facilitate trading of tokenized stocks, ETFs, and cryptocurrencies.

Shortly after acquiring Korbit, Mirae Asset demonstrated strong commitment by injecting approximately $35 million to enhance liquidity, operational stability, and regulatory readiness, signaling robust backing from Digital X’s board. This swift capital infusion underscores the group’s intent to solidify its competitive position in South Korea’s crypto market while laying the groundwork for expansive growth within its digital asset business.

Mirae Asset envisions a transformative $108 billion digital asset business by 2027, leveraging its vast 1,500 trillion won client asset base to pioneer an 'on-chain finance' ecosystem that combines digital-native cryptocurrencies with tokenized real-world assets such as gold, silver, and electricity. Under Chairman Park Hyeon-joo’s leadership, Digital X will spearhead crypto trading and product development, while the broader group advances stablecoin issuance, security token offerings, and real-world asset tokenization, positioning Mirae Asset as a full-service investment powerhouse bridging traditional and digital finance across global markets.

South Korea's digital asset market is entering a new phase of maturation driven by regulatory clarity and institutional engagement. The government’s fast-tracked Phase 2 crypto bill, targeting stablecoins, crypto ETFs, and lifting a nine-year ban on domestic firms' market access, signals a strategic effort to curb capital flight and foster innovation. With South Korea commanding 65% of global stablecoin volume and ranking second in APAC crypto adoption, the country is poised to solidify its status as a regional digital asset hub.

Institutional players like Hana Financial and Samsung are transitioning from observers to active participants by investing in digital asset infrastructure and forming strategic partnerships with key crypto firms such as Dunamu. This collaborative approach, involving industry giants including Kakao and Naver, is crucial for navigating regulatory complexities and advancing interoperability amid competing stablecoin coalitions. However, the market still faces challenges in achieving consensus on standards, which will ultimately depend on widespread adoption rather than technical superiority.

Regulatory milestones slated for early 2027, including the implementation of a 22% capital gains tax on crypto profits and amendments to the Capital Markets Act recognizing distributed ledger technology, will reshape market dynamics and enable tokenized securities markets. While these measures introduce new compliance burdens, they also provide a clearer legal framework that supports innovation, as exemplified by Samsung SDS’s contract to develop a token securities platform aligned with the new rules.

Mirae Asset’s ambitious $108 billion digital asset expansion plan, aiming for profitability by 2027, epitomizes South Korea’s evolving ecosystem where institutional initiatives and corporate strategies converge. Chairman Park Hyeon-joo’s four-part strategy—spanning cryptocurrencies, stablecoins, real-world asset digitization, and security token offerings—leverages Digital X and Mirae Asset’s financial operations to build a diversified and mature market infrastructure, reinforcing South Korea’s position as a global digital asset innovation leader.