They're Getting Serious About Digital Assets in South Korea
South Korea Advances Stablecoin Legislation Following Lee Jae-myung's Inauguration
South Korea's new Digital Asset Basic Act is a game-changer, aiming to comprehensively regulate all things crypto - from cryptos to stablecoins. Here's the lowdown.
Licensing Up for Grabs
So, you wanna be a stablecoin issuer? You'll need at least ₩500 million in capital and a seal of approval from the Financial Services Commission (FSC). But it's not all about the money - companies need to set up safeguards for reserve management and bankruptcy protection too. They're not taking any chances when it comes to keeping user assets safe.
The Biggest Gaze
Think you're a crypto kingpin? Forget about it. Under this new law, every digital asset activity falls under the scrutiny of the FSC. That means licensing, approval, reporting requirements, and more. The Digital Asset Committee, operating under the President's office, will coordinate the national crypto policy, while the Digital Asset Industry Association will monitor market practices and decide which tokens land on local exchanges.
Surging Actions in South Korea's Digital Markets
With over 18 million crypto enthusiasts and stablecoin trade reaching an impressive ₩57 trillion, it's safe to say crypto use in South Korea is on the rise. And with President Lee Jae-myung promising to expand digital asset adoption and bring regulatory clarity, it seems this trend isn't slowing down anytime soon. The election winner, with over 49% of the vote, is putting his money where his mouth is.
Crypto Policies Stirring up the Markets
Lee's stance on crypto has been a breath of fresh air, fueling gains in crypto-related stocks like KakaoPay. But not everyone's feeling the love. Analysts are wary, noting that outcomes remain uncertain. Still, as the crypto market continues to move, South Korea's forging ahead with plans to develop a domestic crypto framework.
But caution's been sounded. The central bank has its doubts, warning that non-bank stablecoins might weaken control over monetary policy. Despite past market failures like Terra's collapse, they're pushing the legislation through - signaling a clear commitment to the future of digital assets in South Korea.
- The Financial Services Commission (FSC) will oversee all digital asset activities, including cryptos and stablecoins, under South Korea's new Digital Asset Basic Act.
- Companies aiming to issue stablecoins in South Korea must accumulate at least ₩500 million in capital and comply with reserve management and bankruptcy protection measures.
- With President Lee Jae-myung's promise to expand digital asset adoption and bring regulatory clarity, the crypto market in South Korea is expected to surge further, potentially impacting businesses like KakaoPay.
