Kaia, a layer-1 blockchain, aims to launch a South Korean won-based stablecoin following the inauguration of President Lee Jae-myung. Lee's campaign included crypto-friendly policies, distinguishing him from other political candidates. However, the issuance of stablecoins faces constitutional challenges, as the Bank of Korea holds exclusive rights to currency issuance. Despite this, the Democratic Party is showing interest in private-sector innovations, with plans for a Digital Asset Basic Act to create a legal framework for the crypto industry. The announcement has sparked a strong response from the financial markets, with shares of Kakao Pay and Danal surging nearly 30%. Kakao Pay, part of the Kakao conglomerate, is well-positioned to benefit from a domestic stablecoin due to its digital wallet capabilities. Investors' optimism about forthcoming regulations has been bolstered by the appointment of Kim Yong-beom, a pro-crypto official, as chief policy officer. The political landscape has shifted favorably for Lee following recent court rulings that have postponed ongoing criminal trials against him, paving the way for a focused crypto agenda.

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