In the context of countries racing to establish a legal framework for the cryptocurrency market, South Korea has officially entered the race with a groundbreaking legislative proposal, paving the way for the issuance and operation of stablecoins under strict state regulation.
Domestic Stablecoins Could Become South Korea's 'Strategic Weapon'
The new bill introduced by Congressman Min Byeong-deok of the ruling party lays the foundation for a comprehensive legal framework surrounding digital assets. The focus of the proposal is on licensing stablecoin issuers – with a minimum capital requirement of 500 million Korean won (approximately 368,000 USD). This barrier is not only intended to ensure financial stability but also to open opportunities for capable businesses to participate in the game.
Notably, President Lee Jae-myung – known for his progressive views on technology and finance – is actively supporting the domestic stablecoin ecosystem. According to sources, he wants South Korea to become a center for issuing stablecoins based on the won, fully backed and scalable to serve both domestic and international users.
This opens up a clear prospect: stablecoins pegged to the Korean won may soon become a reliable alternative to USDT and USDC – especially in DeFi transactions, cross-border payments, and Web3 financial applications without being hindered by exchange rates or restrictive capital flow regulations.
The Legal Framework Opens Up A New Market
The bill does not stop at stablecoins. It also lays the groundwork for the establishment of a Digital Asset Commission under presidential oversight – aimed at coordinating, supervising, and developing this sector in a synchronized manner. For the first time, a comprehensive legal definition for digital assets is proposed, including tokens, DeFi protocols, NFTs, and exchanges.
This will help technology companies, blockchain startups, and investors operating in South Korea gain the necessary transparency for long-term development. Additionally, the new regulations also aim to eliminate fraudulent activities, price manipulation, and insider trading – factors that have previously led to skepticism about the crypto market in the eyes of the public.
Inspired By Successful Models Around The World
The new bill clearly shows that South Korea does not want to fall behind. Congressman Min acknowledged that the legal models in the US, EU, Japan, and especially Hong Kong – which has taken a step forward in licensing stablecoin issuers – are the main sources of inspiration for the draft law.
The US's promotion of the Genius Act and the EU's passage of MiCA is a warning to Asian countries: either you act now, or you will be left behind in the global financial technology race.
The South Korean Financial Technology Ecosystem Is Ready
Market signals indicate great optimism. According to a survey from the Korean Chamber of Commerce and Industry, up to 60% of respondents said they would increase their crypto holdings under President Lee. On June 9, shares of Kakao Pay and Danal – two companies with digital wallet and QR Code payment infrastructure – both hit the ceiling limit of 29.9%.
Kakao Pay, a subsidiary of the Kakao Group, currently has strong ties to the Web3 ecosystem through Klaytn and Kaia – a blockchain joint venture merged from Finschia (backed by LINE). Once the national stablecoin launches, businesses like Kakao could become crucial links in practical applications.
⸻
Conclusion:
With strong political backing and an ambitious legal framework, South Korea is showing that it not only wants to be a player in the cryptocurrency market – but also a leader. Domestic stablecoins, if implemented correctly, could become a strategic tool to propel this nation to the forefront of the decentralized financial revolution.