The ruling party of South Korea has proposed the "Basic Law on Digital Assets," which aims to allow South Korean companies with 500 million won to issue stablecoins.

On June 10, South Korea’s new president, Lee Jae-myung, was quickly making good on his campaign promise to allow local companies to issue stablecoins, further fueling one of the world’s most dynamic digital asset markets. Lee Jae-myung has been a vocal supporter of the adoption of stablecoins. On Tuesday, Lee’s ruling Democratic Party proposed the Basic Law on Digital Assets, which aims to increase transparency and encourage competition in the cryptocurrency industry. According to the bill, a stablecoin could be issued if a South Korean company has at least 500 million won ($367,876) in equity capital while ensuring a refund through a reserve guarantee. South Korea is already a hotbed of cryptocurrency activity, with more than one-third of the population (about 18 million people) participating in the digital asset market. In some cases, the trading volume of domestic cryptocurrency exchanges has even surpassed that of South Korea’s Seoul Composite Index and South Korea’s Growth Enterprise Market Index (KOSDAQ) index. A stablecoin is a cryptocurrency that is pegged to another asset, usually the U.S. dollar. (Golden Ten)