Bloomberg reported on Tuesday that South Korean President Ye Mun’s Democrats introduced the bill to Congress.
The Digital Asset Basic Act aims to increase transparency and encourage competition in cryptocurrency, Bloomberg said. Companies can issue their own stubcoins if they can acquire at least 500 million won ($368,000) of share capital and not only get approval from the Financial Services Commission, but also guarantee the amount.
Lee, who voted as president last week, made many promises to the South Korean crypto industry during his campaign, appealing to the country’s 15 million crypto investors. In it, he said the country should “support the victorious stubcoin market, in order to prevent its citizens from leaking overseas, the South Korean Herald reported.
Stablecoins are fixed at the value of traditional financial assets such as Fiat currency, and the US dollar is comfortable and most common. Their stability provides counterweight against the volatility of cryptocurrencies like Bitcoin
BTC$108,573.51
and ether
ETH$2,736.71
allowing users to retain capital in their digital assets without worrying about a wild swing in price.
The Tether USDT-controlled sector has experienced a surge in interest again this year thanks to progress towards regulating the US sector, among other factors.
The strength of the Stablecoin sector was highlighted last week by the strong performance of the USDC Issuer Circle (CRCL), following the initial public offering (IPO). Stocks will be more than four times the first three days of trading. Furthermore, the sector’s market capitalization reached $250 billion for the first time.