Golden Finance reports that the changes in South Korea’s political landscape are bringing new vitality to the cryptocurrency market. The newly elected president Lee Jae-myung has promptly fulfilled his campaign promises, and the door for local companies to issue stablecoins is about to open. This move will undoubtedly inject strong impetus into one of the world’s most dynamic digital asset markets. Li Zaiming has long been an open advocate of stablecoins. The speed of his actions after taking office demonstrates his determination to promote the development of the crypto industry.
Just this Tuesday, Lee Jae-myung’s ruling Democratic Party put forward a major proposal, the “Basic Law on Digital Assets”, to the outside world. The introduction of this bill aims to create a more transparent development environment for the cryptocurrency industry and stimulate its competitive vitality. According to the content of the bill, as long as a South Korean company has at least 500 million won (approximately 367,876 US dollars) in equity capital and can ensure the refundable funds through reserves, it is eligible to issue stablecoins. The setting of this capital threshold not only ensures that the issuers have certain strength but also lowers the entry threshold to a certain extent, creating opportunities for more potential enterprises to participate in the issuance of stablecoins.
South Korea’s activity in the cryptocurrency field is among the best in the world. More than one-third of its population, approximately 18 million people, are engaged in the digital asset market. The trading volume of domestic cryptocurrency exchanges even outperforms the Seoul Composite Index and the KOSDAQ Index in certain periods, which is sufficient to prove the heat of its market. Stablecoins, as cryptocurrencies pegged to other assets (typically the US dollar), play a crucial role in the crypto ecosystem. They provide a stable medium of exchange for the crypto market and significantly facilitate the trading and circulation of various crypto assets.
This move by Lee Jae-myung is an important step for him to push the South Korean cryptocurrency market to a new stage. Previously, South Korea was cautious in regulating cryptocurrencies. Although the market was active, the progress of many innovative projects was restricted. This time, allowing domestic companies to issue stablecoins is expected to attract more funds and talents to enter this field, accelerating South Korea’s progress in the global cryptocurrency competition. For instance, enterprises can leverage stablecoins to develop more innovative financial products and services, offering investors a wider range of choices and further invigorating the cryptocurrency ecosystem in South Korea. With the subsequent advancement and implementation of the “Basic Law on Digital Assets”, all market participants are closely monitoring the implementation of the relevant detailed rules, expecting the South Korean crypto market to witness a new round of explosive growth with the support of the new policies.
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