South Korea’s New Crypto Bill Paves Way for Regulated Stablecoins

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South Korea’s government is pushing forward with legislation to legalize domestically issued stablecoins, marking a major step in President Lee Jae-myung’s pro-crypto agenda.

The Digital Asset Basic Act, proposed by the Democratic Party, mandates that issuers maintain at least 500 million won ($368,000) in capital and hold reserves to ensure redeemability.

Stablecoin operators must also secure approval from the Financial Services Commission (FSC), reinforcing oversight in one of Asia’s most active crypto markets. The move follows explosive growth in stablecoin trading, with 57 trillion won ($42 billion) in transactions recorded in early 2024.

As one-third of South Korea’s population participates in crypto, the bill aims to foster innovation while protecting investors in this rapidly expanding sector.