Days after President Lee Jae-myung took office, South Korea unveiled a new bill aimed at regulating the stablecoin market. This follows a surge in cryptocurrency usage within the nation. The legislation will allow domestic firms to issue stablecoins backed by the Korean Won with strict controls set by the Financial Services Commission. 🇰🇷 The proposed Digital Asset Basic Act empowers the regulator to oversee stablecoin issuers and manage the broader crypto industry, including ensuring reserve management safeguards and bankruptcy protection for user assets. This move aligns with President Lee’s campaign promise of fostering a well-regulated digital asset landscape. 📈 18 million South Koreans are already active in cryptocurrency markets, reflecting the increasing adoption of digital assets. The bill aims to address potential market instability by implementing stricter oversight mechanisms, including licensing requirements and reporting obligations for crypto companies. The new framework will also strengthen national policy coordination on digital assets through a dedicated Digital Asset Committee under the President’s office and the establishment of a Digital Asset Industry Association to monitor market practices and assess token listings on local exchanges. The Financial Services Commission will gain additional powers, allowing it to investigate unfair trading activities and enforce penalties. The push for regulation comes as stablecoin transactions in South Korea have totaled â‚©57 trillion (USD) in Q1 2025. This new legislation signifies a significant commitment from the administration to establish a robust domestic framework for cryptocurrency development.