- South Korea plans equity and reserve rules for stablecoin issuers
- US GENIUS Act remains stalled despite procedural push in Senate
- South Korean stablecoin trading hit $42B in early 2025
South Korea has introduced a bill to legalize stablecoins and attract digital asset companies in the country. President Lee Jae-myung’s Democratic party introduced the proposal which outlines a formal regulation system for stablecoin issuance. Meanwhile, the United States is uncertain about the GENIUS Act, which has made it to trail behind others.
South Korea Introduces The Digital Asset Basic Act
The Digital Asset Basic Act intends to increase domestic innovation and strengthen supervision of crypto assets. It outlines clear guidelines for stablecoin issuers such as equity capital requirements and regulatory approval process. South Korea can now improve transparency and protect its consumers.
The bill allows local firms to issue stablecoins if they hold at least 500 million won($368,000) in equity capital. The firms are required to get approval from the Financial Services Commission and keep a proper amount of reserves. The government seeks to stop capital outflow through a won-backed stablecoin.
New Administration Focuses on Digital Finance and Crypto
President Lee’s administration is focused on digital finance within the country and plans to improve the infrastructure of the South Korean crypto market. The bill helps local banks and promotes new ideas to address risks in the financial system. Moreover, the proposed framework includes steps to stop misuse, such as anti-money laundering measures.
South Korea’s plan further includes the option for its pension fund to invest in cryptocurrencies, which could increase crypto assets in the nation. The government considers to form a national Bitcoin reserve and improve the competitiveness of the market. These are part of Lee’s plan to ensure South Korea is competitive in the digital economy.
The Bank of Korea’s data reveals that stablecoin trading on local exchanges increased at the start of 2025. In the first quarter, the total amount of transactions with U.S. dollar-backed stablecoins was $42 billion. The growth shows an increase in demand for digital currencies in the country.
U.S Behind in Stablecoin Regulation As Genius Act Stalls
The United States continues to wait for the GENIUS Act to be passed, which would regulate stablecoins. Senator John Thune recently asked for a cloture vote to advance the bill. John Deaton and other legal experts have pointed out that the regulatory system could stall for a long time.
Although President Trump has supported crypto policies, no legislation has passed in the United States. The GENIUS Act which was once seen as a breakthrough, faces difficulties in the legislative process and political opposition. Market participants are worried that the long delays could weaken America’s position in digital assets.
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