Newly elected South Korean president Lee Jae-Myung quickly monitors his promise to the campaign to allow the release of domestic stablecoins, as his party has advanced to a Crypto Bill.
Lee’s ruling democratic party proposed the Digital Asset Basic Act on Tuesday, aimed at improving transparency and encouraging competition in the crypto sector, Bloomberg reported.
The bill sets that local companies can issue stablecoins with a minimum equity capital of 500 million wins ($ 368,000). They should also guarantee refunds through reserves and obtain regulation from the Financial Services Commission, the country’s financial regulator.
South Korea Stablecoin The trade is pouring out transactions involving the leading US dollar stablecoins of up to 57 trillion wins ($ 42 billion) in five major domestic exchanges in the first quarter, according to Bank of Korea’s data.
Looking forward to the new law Bolster like this The goods and boost one of the region’s largest crypto markets, with more than one third of the population, or around 18 million people, reportedly participating.
Lee works to fulfill election promises
South Korean opposition leader Lee sworn as president following a decisive snap Election success on June 3.
In addition to his plans for a local Stablecoin currency, Lee also advanced for the South Korean National Pension Fund to invest in Bitcoin and Crypto, in addition to promises to allow the launch of funds exchanged by the Bitcoin (ETF) exchange in the country.
Related: South Korea’s new president will release crypto, but scandals prevail
“We need to establish a Winning Stablecoin Market back to prevent national wealth from leaking overseas,” he said in a policy discussion in May.
The Bank of Korea contradicts Stablecoin policy
Lee’s crypto ambitions face opposition to the Central Bank, along with Korea bank Rhee Chang-atong who warned that non-bank stablecoins could weaken the effectiveness of the financial policy.
The central bank argues that it should lead to regulating a local stablecoin currency.
South Korea investors can still burn from their multibillion-dollar investments Terra Blockchain and the algorithmic stablecoin co-created by the local Do Kwon, which collapsed in May 2022.
The reaction of South Korean crypto stock
South Korea’s crypto push is walking a rally to local stocks Like Mobile Payment and Digital Wallet Service Kakaopay, which has seen shares that jump nearly 45% in the past five days, According to In Google Finance.
However, JPMorgan’s analysts Stanley Yang and Jihyun Cho said, “The rally in shares related to Kakao is a start to be unfair, as any concrete benefit from Lee’s Stablecoin policy remains unsure.”
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