South Korea’s ruling party pushes forward with crypto bill
South Korea's President Lee Jae-myung is advancing his campaign promise to allow domestic stablecoin issuance, with the Democratic Party proposing the Digital Asset Basic Act. This bill permits local companies to issue stablecoins with a minimum equity capital of 500 million won ($368,000) and requires regulatory approval from the Financial Services Commission. Stablecoin trading in South Korea surged to 57 trillion won ($42 billion) in Q1, driven by participation from over 18 million people. Lee also supports national pension fund investments in Bitcoin and the launch of Bitcoin ETFs. However, the Bank of Korea opposes this stablecoin policy, citing concerns over monetary policy effectiveness. Local stocks like KakaoPay have seen significant gains amid the crypto push, although analysts question the sustainability of this rally due to uncertainties surrounding the stablecoin policy.
