South Korea Unveils Plan To Allow Crypto Stablecoins

South Korea's new President, Lee Jae-myung, is moving swiftly to fulfill his campaign promise of enabling local companies to issue stablecoins. The Democratic Party's proposed Digital Asset Basic Act mandates a minimum equity of 500 million won ($367,876) for issuers, alongside stringent refund reserve requirements and Financial Services Commission oversight.

This regulatory framework emerges three years after the TerraUSD collapse devastated the global stablecoin market—a poignant reminder given Terra's Seoul origins. With 18 million crypto users representing a third of the population, South Korea positions itself as Asia's next digital asset hub.

Stablecoins continue gaining traction worldwide, their utility undiminished by past failures. The legislation balances innovation with consumer protection, potentially catalyzing institutional participation in South Korea's thriving crypto ecosystem.