South Korea's newly elected President, Lee Jae-myung, has proposed the Digital Asset Basic Act allowing local companies to issue stablecoins.
The new bill requires stablecoin issuers to obtain approval from the Financial Services Commission and meet specified eligibility criteria.
Increased retail crypto participation in South Korea has led to the implementation of stricter regulations to ensure transparency and security in the cryptocurrency ecosystem.
The country's Democratic Party has initiated a Digital Asset Committee to develop crypto policies and support industry growth.