South Korea President Pushes Stablecoin Bill, Eyes Crypto Growth

South Korea’s New President Proposes Bill to Regulate Stablecoins and Promote Crypto Innovation

  • Lee Jae-myung, recently elected President of South Korea, is moving forward with a bill focused on stablecoins.
  • The proposed law would let companies issue stablecoins if they have at least $366,749 in equity capital.
  • Stablecoins are cryptocurrencies whose value is tied to stable assets, like the U.S. dollar.
  • Lee Jae-myung previously supported Bitcoin ETFs and suggests launching a won-pegged stablecoin to limit capital leaving the country.
  • The Bank of Korea is considering issuing deposit tokens on public blockchains to work alongside privately issued stablecoins.

South Korea’s President Lee Jae-myung announced new legislation to regulate stablecoins on Tuesday, underlining his support for cryptocurrency-related policies. The bill would permit companies to issue stablecoins if they maintain a minimum equity capital of $366,749, reports Bloomberg.

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The Digital Asset Basic Act aims to provide a regulatory framework for stablecoins in South Korea. Stablecoins are digital currencies designed to hold a consistent value by linking to stable assets, such as the U.S. dollar. Companies wanting to issue these tokens must meet the set capital threshold to participate.

Lee Jae-myung, who won the national election last week, has a history of supporting digital asset innovation. During an earlier campaign, he experimented with non-fungible tokens (NFTs) and has stated intentions to legalize Bitcoin ETFs in the country. Lee has also proposed launching a stablecoin tied to the national currency to prevent capital outflow, saying that such measures are needed to protect “national wealth from leaking overseas.”

Last month, the Bank of Korea said it was discussing the possibility of issuing deposit tokens on a public blockchain. These tokens would operate alongside privately issued stablecoins, providing more options within the country’s financial system.

Globally, regulations on stablecoins remain a significant topic. Regulatory bodies continue to debate how to manage these assets, and several lawmakers in the United States are reviewing similar stablecoin legislation. High-profile banks and businesses have either launched or are planning stablecoin products to serve their customers.

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