tl;dr
South Korea's newly elected president, Lee Jae-myung, proposed the Digital Asset Basic Act, which would allow companies with 500 million won ($366,749) in equity capital to issue stablecoins. Stablecoins are digital tokens pegged to non-volatile assets like the U.S. dollar and backed by reserves. Le...
South Korea's newly elected president, Lee Jae-myung, has proposed the Digital Asset Basic Act, which aims to legalize the issuance of stablecoins by companies with at least 500 million won ($366,749) in equity capital. Stablecoins are digital tokens pegged to stable assets such as the U.S. dollar and are backed by corresponding reserves to ensure value stability.
President Lee, a known supporter of cryptocurrency innovations, previously experimented with NFTs during his campaigns and advocates for the approval of Bitcoin ETFs in the country. Additionally, he has proposed introducing a won-pegged stablecoin to help prevent capital flight and retain national wealth within South Korea.
The Bank of Korea is also exploring the issuance of deposit tokens on public blockchains to operate alongside private stablecoins, reflecting a growing interest in integrating blockchain technology into the national financial system.
Globally, stablecoins continue to be a focal point for regulators, with ongoing legislative debates and corporate initiatives aiming to balance innovation with financial security. As South Korea moves forward with its crypto-friendly policies, the Digital Asset Basic Act could set a precedent for how stablecoins are managed and regulated in the region.