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This month, the South Korean stock market was charged by an investor madness against the digital money obtained after the newly elected President Lee Jae-Myung was pledged to enable crypto assets that are supported by the national currency.
Shares that were involved in the Bank of KoreaThe Digital Currency Project, including Kocao Pay and LG CNS, was on a wild trip. Kocao paid the shares more than doubled this month and LG CNS rose by almost 70 percent before gaining some profits for the winning company this week.
At the Kosdaq Junior Market, the Fintech security company ATON rose of 80 percent, while Me2on, a mobile phone producer, tripled, whereby his subsidiary had recently started a dollar-pegg Stablecoin For casino games.
The wave of the retail enthusiast for the likely edition of Won-Based StableCoins and the expectations of the shareholder-friendly guidelines of The new governmentcontributed to increasing the Benchmark Kospi Composite Index to almost four years of high this year. It also made South Korea the best market in Asia in Asia in the first half of the year.
Market Rally has encouraged retail investors to increase their levers to pursue profits, with the outstanding Margin loans, according to the Korea Financial Investment Association, which increased to 20.5 m (15 billion USD).
The popularity of shares that may benefit from WLE stable coins comes, although the government has not yet announced the details of its cryptocurrency guidelines.
The expectations were heated by Lee by the appointment of Kim Yong-Beom by Lee, a long-time advocate of digital tokens, the main policy consultant and a parliamentary law proposed by the ruling party this month to promote the state’s digital assets.
The legislation will enable companies with profit capital in stablecoins only won. A move criticism could open the locks for sub-capitalized players and cause systemic risks.
South Korea is one of the most lively crypto markets in the world. For example, a fifth of the country’s population acts digital assets in the country. The US dollar-shaped stable coins trade with the country’s hit won 57TN in the first three months of this year and put pressure on the Bank of Korea to accelerate preparations for the exhibition of its own digital currencies.
Banks, brokers and fintech companies show a strong interest in entering the business, although the government does not yet decide on the issuers and the time.
“We want to do business, but we pay attention to where the government is drawing regulation in terms of regulation,” said a manager of the FinTech industry.
The governor of the Bank of Korea, Rhee Chang-Yong their effect About capital flows and the effectiveness of monetary policy. The central bank said that it would consult large commercial banks in creating a second pilot test of its digital currency.
However, experts have warned that some stocks that rose higher due to increasing interest in digital token can be overvalued on the basis of their basics. You have asked investors to caution due to the volatility of the shares.
“The stable coins obtained are probably introduced, but how much that will help to increase the company results is questionable,” said Hwang Sei-Woon, Senior Research Fellow at Korea Capital Market Institute.
“In view of the still high regulatory uncertainties, the expectations of investors seem to be exaggerated. Some of the high -flying companies are still missing the necessary technologies and infrastructures for stable coins,” he added.
