South Korea is taking steps towards regulating the cryptocurrency market by introducing a new bill focusing on stablecoins. The proposed Digital Asset Basic Act outlines licensing requirements for stablecoin issuers, demanding minimum capital of 500 million Korean Won ($367,890). This move reflects a desire to foster innovation within the country while ensuring user protection. President Lee Jae-myung, an advocate for stablecoin regulation and scaling, supports this framework.
The legislation also establishes a presidential-led Digital Asset Committee to oversee digital asset matters, further regulating the industry and promoting transparency. This move is expected to benefit developers, DeFi platforms, and exchanges operating in or planning to enter South Korea’s market.
By cracking down on pump-and-dump tactics, rug pulls, and insider trading, the bill aims to foster trust in the cryptocurrency space for both investors and users. Notably, it draws inspiration from successful regulations implemented by countries such as the US, EU, Japan, and Hong Kong, specifically highlighting the influence of Hong Kong’s stablecoin licensing framework.
South Korea is positioning itself as a leader in regulated blockchain and stablecoin innovation, creating an attractive environment for both traditional and cryptocurrency investors. A recent survey suggests that 60% of participants are planning to increase their investments in cryptocurrencies under President Lee. This optimism translated into market performance, with Kakao Pay and Danal both experiencing notable gains.
President Lee’s strong backing of this bill signifies a commitment to fostering innovation while maintaining regulatory control, paving the way for the emergence of locally-issued stablecoins as viable alternatives to established tokens like USDT and USDC.