South Korea’s Ruling Party Proposes Bill to Allow Stablecoin Issuance
South Korea's Democratic Party submitted a bill to parliament allowing qualifying companies to issue stablecoins. Key points include:
- The proposed Digital Asset Basic Act aims to enhance transparency and competition in the cryptocurrency sector.
- Companies must have at least 500 million won ($368,000) in equity capital and secure approval from the Financial Services Commission.
- President Lee Jae-myung pledged support for a won-based stablecoin market during his election campaign, targeting the country's 15 million crypto investors.
- Stablecoins are tokens pegged to traditional assets, providing stability against cryptocurrency volatility.
- The sector has gained traction, particularly due to advancing regulation in the U.S.
- Market capitalization of stablecoins reached $250 billion, with notable performance from Circle's stock following its IPO.