South Korea is now moving very quickly in the matter of cryptocurrencies, especially after the new president Lee Jae-myung came in, who is very supportive of crypto and promised to support legislation for investment funds in Bitcoin. He also wants to allow government pensions to invest in this market and is thinking of creating a stablecoin pegged to the Korean won to control the movement of money.
The surprise is that even the opposition party there supports these legislations and they are all trying to come up with a comprehensive law called the Digital Asset Basic Act, which will regulate the entire market and set rules for platforms, tighten KYC regulations, and regulate stablecoins.
Starting next month, they will allow banks and non-profit organizations to buy and sell crypto but under strict supervision and with annual audits. Banks will also lift the restrictions that forced platforms to work with only one bank.
The popular market there is literally on fire, with a third of the population dealing in crypto, and on some days, trading volume exceeds that of the official stock exchange. Prices in Korea are about 3% higher than the global market due to high demand.
In short, Korea is preparing itself to become one of the strongest crypto markets in a regulated and protected manner, and this could significantly impact the global market in the coming period.
