South Korea's ruling and opposition parties have proposed competing stablecoin legislation amid tensions as the country seeks a competitive edge in the global crypto marketplace. The Democratic Party's Ahn Do-geol introduced a bill that bans interest payments on won-pegged stablecoins while requiring full reserve backing. In contrast, the ruling People Power Party, represented by Kim Eun-hye, has proposed legislation that does not prohibit interest payments. Both bills grant emergency powers to financial regulators and demand full liquidity for stablecoin issuers. Ahn emphasized consumer protection and control over reserve assets, while Kim's legislation aims to enhance innovation in digital assets. The split in the proposed regulations reflects a broader global trend as nations race to establish regulatory frameworks for stablecoins that support market integrity while fostering growth in digital currencies.

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