South Korea Moves to Legalize Stablecoin Issuance
South Korea proposes a bill to let firms issue stablecoins, boosting its crypto economy.
- Ruling party proposes Digital Asset Basic Act.
- Companies with $368K+ capital can issue stablecoins.
- Aims to regulate and expand crypto in South Korea.
New Bill Could Reshape Crypto in South Korea
South Korea is taking a major step toward embracing the crypto economy. The ruling People Power Party has introduced a new bill called the Digital Asset Basic Act that would allow companies with capital exceeding $368,000 to issue stablecoins. This move could place South Korea among the world’s most crypto-friendly nations.
Stablecoins are digital currencies pegged to stable assets like the US dollar or Korean won. They help reduce price volatility, making them popular for payments and savings in the crypto world. This new legislation suggests the South Korean government is working toward a more structured and open approach to digital finance.
Who Can Issue Stablecoins Under the New Law?
The proposed law would allow South Korean firms with a minimum capital of 500 million won (about $368,000 USD) to issue their own stablecoins. This sets a relatively low barrier to entry compared to other countries, opening the door for a wide range of startups and fintech firms to join the space.
The goal is to provide a legal framework that ensures transparency, security, and accountability in stablecoin operations, while also encouraging innovation. Regulatory clarity like this is something crypto businesses have long demanded.
South Korea’s Broader Push for Crypto Regulation
This proposal follows South Korea’s ongoing efforts to regulate the digital asset market more clearly. In 2023, the country introduced new crypto tax rules and expanded its oversight of exchanges. Now, with this new law, the government seems to be pushing for wider adoption and controlled expansion of blockchain technology.
If passed, the South Korea stablecoin law could signal a major shift in how countries view crypto. Instead of a threat, South Korea sees it as a tool for innovation — as long as it’s properly regulated.
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