South Korea’s new president, Lee Jae-myung, has begun implementing his campaign promise by speeding up legislation to allow the issuance of local stablecoins.
On Tuesday, the ruling Democratic Party proposed the Digital Assets Basic Act, which aims to increase transparency and stimulate competition in the crypto sector.
Under the bill, local companies would be allowed to issue stablecoins provided they have a minimum equity capital of $368,000.
They would also have to guarantee repayment through reserves and obtain approval from the Financial Services Commission.
According to data from the Bank of Korea, stablecoin trading in South Korea has surged, with transactions involving major US dollar stablecoins reaching around $42 billion on the country’s five major crypto exchanges in the first quarter of 2025.
The new legislation proposed under President Lee Jae-myung is expected to further strengthen this trading activity, cementing South Korea’s position as one of the largest crypto markets in the Asia region.
More than a third of South Korea's population, equivalent to about 18 million people, is now reportedly active in the digital asset market, a figure that shows just how much influence the sector has on the country's economy.
