South Korean president backs won-based tokens, stocks rally

The South Korean actions increased following the promise of President Lee Jae-Myung to allow assets of cryptocurrency supported by one. This has aroused intense interests among retail investors in companies associated with digital money projects.

The Kospi Composite reference index has won almost 30% this year, making the most efficient market in South Korea in the first half.

According to the Financial timeThe actions associated with the digital currency initiatives of the Korean Bank have experienced significant price fluctuations. While LG CNS shares increased by around 70% in June before backing due to taking the profits, Kakao Pay the shares have more than doubled.

Fintech stocks care about speculative attention

Companies listed in Kosdaq have experienced major movements based on Stablecoin connections. The Fintech security company, ATON, jumped 80% while the producer of mobile games Me2on tripled after its subsidiary launched a pointcoin at point for casino applications.

The enthusiasm of retail has led to the outstanding margin loans at Worn20.5 Billions ($ 15 billion), according to data from the Korea Financial Investment Association. Investors increase the leverage to continue gains, although the government does not yet announce detailed policies of cryptocurrencies.

The expectations intensified following the appointment by Lee of Kim Yong-Beom, a defender of the digital tokens, as a chief political advisor. A parliamentary bill proposed this month would allow companies of 500 million equity to issue stalins based on WON.

South Korea hosts one of the most active cryptographic markets in the world, with around 20% of digital population trading assets. Stablecoins with USD reached 57 billions of Billion in volume of negotiation during the first quarter, which prompted the Korean bank to accelerate its preparations for digital currency.

Banks, brokerage houses and fintech companies show a strong interest in the issue of stables, although the government has not determined requirements or deadlines. “We want to do the business, but we monitor where the government is drawing the line in terms of regulation,” said an fintech industry manager.

The Governor of the Bank of Korea, Rhee Chang-Yong, expressed his concerns about non-banking entities issuing won stablecoins. He also cited the potential impacts on capital flows and the effectiveness of monetary policy.