South Korea plans to enact the National Asset Basic Act, a landmark law that will treat cryptocurrencies and other digital assets as part of state wealth for the first time. The reform, announced on July 15, 2026, by the Ministry of Economy and Finance, replaces the 76-year-old State Property Act and covers roughly 1,400 trillion won ($940 billion) in government holdings. The move signals a fundamental shift from viewing crypto as speculative risk to recognizing it as a long-term national asset.
National Asset Basic Act Redefines State Wealth
The proposed legislation expands the definition of state assets to include cryptocurrencies, virtual assets, and intellectual property, moving beyond the old focus on real estate and preservation. Officials described the current rules, anchored in the State Property Act of 1950, as outdated for a modern digital economy. The new model prioritizes value creation over simple custody of public property.
The government also plans to tokenize state-owned real estate through security tokens, allowing citizens to invest and share returns. A pilot for tokenized government bonds linked to the Bank of Korea's CBDC infrastructure is scheduled for 2027. The scale of the reform is enormous, as the law will govern about 1,400 trillion won in state holdings, equivalent to nearly $940 billion.
Implications for South Korea's Crypto Market
The measure marks a philosophical shift from previous crypto rules that concentrated on investor protection and exchange oversight. By recognizing digital assets as national property, South Korea integrates them into its long-term financial infrastructure rather than treating them as pure speculation. The context is significant: South Korea handles an estimated 15% to 20% of global crypto trading volume, with more than 18 million local participants.
According to CoinGecko data, average monthly trading volume in KRW fell by 21.7% from Q4 2025 (125.2 trillion won) to Q1 2026 (98.1 trillion won). Officials note that capital is not leaving the market but rotating from retail speculation toward institutional settlement infrastructure. The reform arrives alongside a broader digital agenda: authorities are advancing the Digital Asset Basic Act to set rules for won-pegged stablecoins, and reviewing Capital Markets Act amendments to enable the first spot crypto ETFs.
A legal basis for cross-border stablecoin transactions is also in the works, easing international payments with digital assets. Implementation details remain pending, including how the state would acquire, custody, or value its future digital holdings over time. Still, the direction is clear: one of the world's most active crypto markets now wants its government balance sheet to speak the same language as its digital economy.