South Korea, US SEC Discuss Unified Crypto Rules

The SEC’s crypto task force hosted a delegation of South Korean officials, legal advisers and industry leaders in Washington on Tuesday to discuss coordinated rules for digital assets. The meeting addressed stablecoins, tokenized securities, custody and cross-border oversight following recent incidents in South Korea.

The SEC released a memorandum and meeting outline that said U.S. regulatory choices will heavily influence South Korea’s emerging digital asset frameworks. The document warned, “Unnecessary divergence between major jurisdictions may create uncertainty,” and described Korea as a significant market with active retail participation and growing institutional interest.

Attendees explored how to classify tokens, how to regulate stablecoins and how to enable tokenized versions of traditional assets such as stocks and bonds. South Korean delegates emphasized the need for clear classification standards, a long-running issue tied to debates over whether certain tokens should be treated as securities, and discussed rules to permit trusted issuance of tokenized real-world assets.

Custody procedures were a major focus after an incident earlier this year in which South Korea’s national tax agency shared seed phrases that unlocked seized wallets. About $4.8 million in crypto was taken quickly and later returned. The episode prompted questions about how private keys are stored and the protocols state authorities use when handling seized assets.

Delegates also reviewed an operational error at exchange operator Bithumb, where the platform mistakenly credited users with roughly $43 billion worth of Bitcoin, briefly lowering the token’s price on the exchange. South Korean authorities have booked Bithumb CEO Lee Jae-won on suspicion of bribery related to the alleged hiring of a lawmaker’s relative, and the exchange’s headquarters were searched as part of that probe.

The meeting came as U.S. lawmakers debate crypto legislation, including the CLARITY Act, which has divided opinion. The SEC earlier this year delayed an exemption for tokenized assets, citing concerns about third-party issuers.

South Korean officials and industry participants said they are watching U.S. regulatory outcomes as they draft domestic rules. A government survey released in March found 11.13 million accounts registered with regulated crypto firms, roughly one in five citizens if each account belongs to a different person.

No binding agreements were announced after the session. Delegates agreed to continue discussions on token classification, custody safeguards and cooperation on cross-border enforcement as South Korea advances new regulatory proposals.