Keep the Promise, South Korean President Legalizes Stablecoin a Week After Election
Elected South Korean President Lee Jae-myung fulfilled his promise to allow domestic companies to issue stablecoins. Interestingly, he kept that promise just one week after the general election.
In his campaign, Lee promised to legalize Bitcoin exchange-traded funds (ETFs) and launch a stablecoin pegged to the won to prevent circulating capital from fleeing overseas.
Not only that, the ruling Democratic Party in South Korea has also proposed a Draft Law (Bill) on Digital Assets to enhance transparency and encourage competition in this sector.
This allows South Korean companies to issue stablecoins if they have at least 500 million won or around Rp5.9 billion in equity capital while ensuring that refunds are guaranteed through reserves.
South Korea is one of the countries with many crypto investors, with around 18 million people participating in the digital asset market. On some days, trading volume on local crypto exchanges surpasses the turnover in the Kospi and Kosdaq stock indices.
For information, stablecoins are cryptos pegged to other assets, examples being USDT and USDC which are pegged to the US dollar. Stablecoins have gained global momentum as the regulatory framework develops.