Overview

• The Digital Asset Basic Act, spearheaded by President Lee Jae-myung’s Democratic Party, would let companies issue won-pegged stablecoins if they meet a 500 million won equity threshold with refundable reserves.
• Issuers must obtain approval from the Financial Services Commission before launching stablecoins under the proposed framework.
• Parliament is now reviewing the bill, which is designed to enhance market transparency and foster competition in South Korea’s digital asset sector.
• Global stablecoin market capitalization recently topped $250 billion for the first time, underscoring accelerating investor demand.
• USDC issuer Circle saw its stock price more than quadruple during the first three days after its IPO, highlighting robust market appetite.