The ruling party of South Korea plans to lower the issuance threshold for stablecoins to 500 million won.

Gate News bot message, Sisa Journal recently reported that South Korea's ruling party, the Democratic Party, officially submitted the draft of the "Basic Law on Digital Assets" on June 10. The bill, led by Min Byeong-deok, a member of the National Assembly's Administrative Affairs Committee and chairman of the Special Committee on Digital Assets, aims to reduce the minimum capital requirement for stablecoin issuance companies from 5 billion won to 500 million won, approximately $368,000.

This move aims to create a more favorable market environment for fintech and cryptocurrency startups. In response, the Bank of Korea expressed a cautious stance, emphasizing that improper institutional design poses risks of undermining the status of the Korean won as legal tender, as well as impacting the effectiveness of monetary policy and financial stability.

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