In South Korea, a new bill could allow companies to issue stablecoins, as reported by Bloomberg on Tuesday. The Digital Asset Basic Act aims to increase transparency and encourage competition within the cryptocurrency market.
Companies will need a minimum of 500 million won ($368,000) in equity and Financial Services Commission approval to issue stablecoins. President Lee Jae-myung, who was voted in last week, previously promised support for a won-based stablecoin market.
The stablecoin sector, largely led by Tether's USDT, has seen increased interest this year, partly due to regulatory progress in the U.S. The sector's market cap recently hit $250 billion. This follows the strong performance of Circle's stock (CRCL) after its IPO, with shares more than quadrupling in the first three days of trading.