South Korea’s largest political party is urging the government to fast-track the institutionalization of Korean won-pegged stablecoins, taking inspiration from the Trump administration’s recent stablecoin legislation.
According to local media Edaily, lawmakers from the Democratic Party are calling for regulatory frameworks to support KRW-backed stablecoins. Min Byeong-deok, chairman of the party’s Digital Asset Committee, emphasized that the global stablecoin market could soon surpass artificial intelligence and semiconductors in size and impact.
He stressed the urgent need to formalize Korean won-pegged stablecoins, arguing that this move would strengthen the national fiat currency through cryptocurrency and boost global demand for won-backed assets. Min remarked,
“We need to take the lead in institutionalizing stablecoins before U.S. dollar-based stablecoins become firmly established. That is the only way to secure a sure position in the global battle for stablecoin hegemony.”
Meanwhile, Lee Jae-myung, the Democratic Party’s presidential candidate, is leading the race ahead of the upcoming elections. Min highlighted the growing use of stablecoins in South Korea, citing that
“these two [stable]coins account for 90% of the stablecoin market in the United States and are also used in areas such as Dongdaemun, where many foreign payments occur.”
To support this initiative, Min is pushing South Korean lawmakers to pass a stablecoin bill, currently drafted as the “Basic Act on Digital Assets.” Having completed a second review with industry experts and the media, he plans to submit the bill following a third review.
The stablecoin market currently holds a capitalization of approximately $250 billion, reflecting a 0.4% change over the last 24 hours, underscoring the growing significance of stablecoins globally.
South Korea is preparing to welcome institutional players as it gears up for a more regulated digital asset market. On May 20, the Financial Services Commission (FSC) unveiled new rules to tighten oversight of cryptocurrency sales and listings, particularly for nonprofit organizations.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
