South Korea's new president, Lee Jae-myung, is moving quickly on campaign pledges as the ruling Democratic Party proposes a bill to issue local stablecoins. The Digital Asset Basic Act, announced on Tuesday, aims to improve transparency and boost competition within the crypto sector.

Under the proposed law, South Korean firms could issue stablecoins if they hold at least 500 million won in equity capital. These issuers must maintain sufficient reserves and gain approval from the Financial Services Commission.

The move comes as stablecoin trading in South Korea surges, reaching 57 trillion won in Q1 alone.

Lee's push for broader crypto integration includes proposals for the national pension fund to invest in Bitcoin and permitting Bitcoin ETFs. However, the Bank of Korea has voiced opposition, warning that private stablecoins could undermine the central bank's control over monetary policy.

Despite uncertainties, local crypto stocks such as KakaoPay have seen sharp gains, though some analysts caution the optimism may be premature.