South Korean President Lee Jae-Myung’s Democratic Party presented a bill to parliament that would allow qualifying companies to issue StableCecoins, Bloomberg reported on Tuesday.
The digital asset -based law is aimed at improving transparency and encouraging competition in cryptocurrency, Bloomberg said. Companies would be able to issue their own stableecoins, provided they have at least 500 million won ($ 368,000) in equity healing capital and can guarantee reimbursement through reserves and receive approval from the Financial Services Commission.
Lee, who was voted as president last week, gave a series of promises to South Korea’s crypto industry during his election campaign and appealed to the country’s 15 million cryptoinvestors. Among them, he said the country should support a water-based stablecoin market “to prevent national wealth from leaking abroad,” Korea Herald reported.
Stableecoins are symbols associated with the value of a traditional financial asset, such as a Fiat currency where the US dollar is comfortably the most widespread. Their stability provides a counterbalance to the volatility of cryptocurrencies like Bitcoin
And ether that allows users to keep capital in digital assets without having to worry about wild swings in price.
The sector dominated by Tether’s USDT has experienced an increase in interest this year thanks to other factors progress towards regulation of the sector in the US
The strength of the stablecoin sector has been highlighted in the last week of the strong performance of the USDC Issuer Circle’s Stock (CRCL) after the original public offer (IPO). The shares more than quadrupled during the first three days of trade. In addition, the sector’s market capital reached $ 250 billion for the first time.
