South Korea is taking a significant step toward regulating its cryptocurrency industry with the introduction of a new Digital Asset Basic Act. This legislation, unveiled by lawmaker Min Byeong-deok during a press conference, aims to foster innovation and build trust within blockchain markets while also addressing concerns about capital outflow through foreign-denominated stablecoins. The bill mandates a licensing system for stablecoin issuers, requiring a minimum capital of 500 million won ($367,890). This aligns with President Lee Jae-myung’s campaign pledge to develop a Korean Won-backed stablecoin industry. The move seeks to restrict capital leakage through foreign-denominated stablecoins.