South Korea's National Assembly Political Affairs Committee is reviewing three bipartisan stablecoin bills today. These proposals, backed by lawmakers from both the People Power Party and the Democratic Party, mandate a 5 billion won minimum capital requirement for stablecoin issuers. The bills aim to enhance consumer protection and ensure transparency in reserve backing, focusing specifically on stablecoins to address financial stability concerns.
The proposed regulations are designed to prevent undercapitalized projects from failing, potentially boosting credibility for legitimate stablecoin initiatives and attracting institutional investors. However, the requirements may also limit competition by favoring larger entities. If enacted, these bills could establish a regulatory model for other countries to follow.
South Korea's National Assembly Reviews Stablecoin Bills with Capital Requirement
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