South Korea’s National Asset Basic Act Could Transform Crypto Into State Wealth

South Korea is preparing a sweeping overhaul of how it manages public assets by proposing the National Asset Basic Act, legislation that would recognize cryptocurrencies, virtual assets, and intellectual property as part of the country’s national wealth. If enacted, the reform would mark the first major update to the nation’s asset management framework in 76 years, signaling a significant shift in how digital assets are viewed within government policy.

The Ministry of Economy and Finance unveiled the proposal during a policy briefing in Seoul on July 15 as part of its economic strategy for the second half of 2026. The new law would replace the State Property Act of 1950, which primarily focused on managing physical assets such as real estate and has long been considered outdated for today’s digital economy.

The legislation would govern approximately 1,400 trillion won ($940 billion) in state assets. Rather than emphasizing simple preservation of public property, the government aims to adopt a value-creation model that incorporates emerging digital asset classes into long-term national wealth management.

As part of the initiative, South Korea also plans to tokenize state-owned real estate using security tokens, allowing citizens to invest in government-owned properties and share in potential returns. In addition, officials intend to launch a pilot program for tokenized government bonds connected to the Bank of Korea’s central bank digital currency (CBDC) infrastructure in 2027.

The proposal represents a major policy shift for one of the world’s largest cryptocurrency markets. Previous regulations largely focused on investor protection and oversight of crypto exchanges. By recognizing digital assets as state property, the government is positioning cryptocurrencies as a strategic component of the country’s long-term financial infrastructure instead of treating them primarily as speculative investments.

South Korea accounts for an estimated 15% to 20% of global cryptocurrency trading volume, with more than 18 million domestic crypto users. While CoinGecko data shows average monthly KRW-denominated trading volume declined from 125.2 trillion won in Q4 2025 to 98.1 trillion won in Q1 2026, the shift is widely viewed as capital moving toward institutional settlement infrastructure rather than exiting the crypto market.

The proposal also complements broader digital asset reforms, including the planned Digital Asset Basic Act, regulations for won-backed stablecoins, proposed spot crypto ETFs, and new rules supporting cross-border stablecoin payments. Although details surrounding government acquisition, custody, and valuation of digital assets remain under review, the initiative underscores South Korea’s commitment to integrating blockchain technology into its national financial strategy.