The South Korean Government is Accelerating the Reform of the Digital Currency Sector, with Stablecoin Management Becoming a Strategic Focus.
President Lee Jae-myung's administration is moving towards a more cryptocurrency-friendly environment, considering this one of the key national tasks. Specifically, the major goals are to build a digital asset ecosystem and develop the domestic cryptocurrency market.
At the press conference on August 13, the South Korean Presidential Office announced that this plan will be strongly promoted through legal framework reform, helping the domestic cryptocurrency industry break through. Among this, stablecoin — a type of cryptocurrency tied to the value of stable assets like USD or gold — will be more closely monitored and managed to ensure investor safety and reduce market volatility risks.
Notably, the South Korean government is studying the stablecoin management mechanism based on the European (MiCA) and Japanese models, while still wanting to adjust it to suit the domestic market conditions. This move aims to avoid repeating shocking collapses like Do Kwon's Terra-LUNA event — an incident that caused heavy losses for hundreds of thousands of domestic and international investors in 2022.
Additionally, experts in Seoul believe this reform could pave the way for large financial groups to participate more deeply in the crypto market, especially in issuing domestic stablecoins and cross-border payment services. This not only helps South Korea consolidate its position as Asia's digital asset center but also creates direct competition with Japan and Singapore.
On the international stage, this event occurs against the backdrop of many countries accelerating cryptocurrency market regulation. In the US, during President Donald Trump's administration, the US government is also pushing to loosen regulations to promote innovation in the blockchain field.
